SaaS & Software: Croatia vs Cyprus VAT Rules
How VAT obligations differ for saas & software between Croatia and Cyprus.
| Criterion | Croatia | Cyprus |
|---|---|---|
| Standard rate applied | 25% | 19% |
| Registration threshold | €39,816 annual turnover | €15,600 annual turnover |
| Filing frequency | Monthly | Quarterly |
| Invoicing constraints | Mandatory fiscal cash registers. Invoices must include all standard EU fields. e-Invoice system for B2G. | Standard EU invoice requirements. Tax invoices must be issued within 30 days of supply. Self-billing allowed. |
| Sector-relevant regimes | Mandatory fiscalization of all invoices · Reduced rate for tourism and hospitality · Special scheme for farmers | Special scheme for travel agents · Reduced rate for renovation of private dwellings · IP box regime interacts with VAT planning |
| Penalty exposure | Interest at 5.89% annually on late payments. Fines from €260 to €46,400 for non-compliance. | 10% surcharge on late payments. €50 per day penalty for late filing, capped at €1,000. |
Typical use cases
B2B SaaS
Business software sold to companies in other EU member states.
B2C Apps & Services
Consumer-facing digital services and mobile applications.
API & Infrastructure
Developer tools, APIs, and cloud infrastructure services.
White-Label Solutions
Resold or white-labeled software platforms.
Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC
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