Croatia Tax Agency Clarifies Anti-Avoidance Rules for Electronic Goods Sold by Foreign Company

The Croatian Tax Administration Oct. 25, 2021, clarified the anti-avoidance rules for electronic goods sold by a foreign company. The taxpayer is an Austrian VAT-registered company that sells electronic goods online through a subsidiary company in Croatia. The subsidiary provides marketing support to the company and isn’t involved in the business model. The taxpayer sought clarification as to the tax treatment of the online sales. The agency clarified that the company isn’t subject to obligations under the anti-avoidance law because: 1) the subsidiary doesn’t sell goods through planned online sales; and 2) the subsidiary isn’t included in the business model. ...