How can a company benefit from VAT refunds when investing in the purchased property?
The new company is not required to declare itself as a VAT taxpayer unless its total revenue exceeds 80.000 HRK (app. 11.000 EUR). However, it is convenient for a company to become a VAT taxpayer immediately after the incorporation procedure has been completed, since they can deduct 22% from any expenses for goods purchased or services provided, while renovating or redecorating the purchased property. The only limiting factor is that the supplier must also be a VAT taxpayer and his invoice must show the VAT entry clearly stated. The company will then get the refund of the overpaid amount when it files for next VAT statement.
