Pula, Croatia

Life on the Edge: Trading With and Through Croatia’s Border Countries

By Biljana Svaljek, INFOKORP

Croatia borders six countries, while three of them are third countries. Therefore, it encounters various situations in terms of exports or imports of goods. Upon entering the EU, Croatia took over a huge role in customs due to the long borders. Regarding EU trade, the rules are the same and not subject to customs. When trading includes goods out of the EU, customs control applies, and goods are cleared in accordance with EU customs regulations.

There are two transit procedures: T1 and T2. T1 is mainly used for transport of non-EU-origin goods. T2 is being used for transport of EU-origin goods with possibility of passing through a third country as well. The most frequent transport of goods from Croatia relates to Serbia, Bosnia Herzegovina, Montenegro, Bulgaria, and Turkey. As Turkey is one of the biggest importers of goods from the EU, below is presented one practical transport procedure from Austria to Turkey.

An Austrian company prepares export documents of goods leaving the EU. Export declaration is made along with CMR. On the border between Croatia and Serbia, the Customs Authority discharges the goods and activates the T2 form. During transportation, the goods will pass through thirdcountry Serbia and EU-country Bulgaria, with a final destination in Turkey. In each country a copy of the T2 form, CMR, and supporting invoice will have to be submitted. In Turkey, the T2 form will be the basis for the import declaration.

As of 2021, Croatia implemented a regulation where it is possible to apply calculated VAT when importing goods from third countries. VAT on import is considered to be paid if the taxpayer is registered in the VAT system and has the right to deduct VAT in the full amount. Such a procedure must be requested by the taxpayer upon customs declarations, releasing goods for free circulation.

The above procedures are often complex and need to be guided by a customs and a tax specialist.

Biljana Svaljek

Biljana Svaljek

GGI member firm
Accounting, Tax, Advisory
Zagreb, Croatia
T: +385 1 2221 200
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: www.infokorp.hr

INFOKORP provides accounting and payroll services, tax consulting, management consulting, and corporate services. The firm is dedicated to solving problems, regardless of their complexity to both national and international clients. The main office languages are Croatian, English, and German.

Biljana Svaljek has a long career in accounting and tax advisory. She is experienced in due diligence, forensic accounting, transfer pricing, and financial analysis. She also holds lectures and provides education to both domestic and foreign clients.

Published: International Taxation Newsletter, No. 14, Spring 2021 l Photo: Maximilian - stock.adobe.com

Ggi Logo 150x109px

GGI Global Alliance AG

Sihlbruggstrasse 140
6340 Baar


T: +41 41 7252500
F: +41 41 7252501
This email address is being protected from spambots. You need JavaScript enabled to view it.