In short

• If you sell goods to consumers in other EU countries under the OSS scheme, VAT follows the country where delivery ends.
• Such a sale is not subject to fiscalization and is not reported in the issued invoices ledger or on the VAT form.
• In Kigo you turn on one setting: these invoices are then issued without fiscalization, and for each quarter you get records by country and VAT rate.

What the regulations say

The Croatian Tax Administration states that for distance sales within the EU to persons who are not taxable persons, the place of supply is the member state where dispatch to the customer ends, and that such a sale is not subject to fiscalization (question 8, in Croatian).

Registration for OSS and the quarterly VAT return are filed with the Tax Administration on its portal. The return is filed for each calendar quarter by the last day of the following month, and VAT is paid by the same date. The same page describes the 10,000 euro threshold.

According to an opinion of the Tax Administration of 30.6.2021 (class 410-01/21-01/1348), these supplies are not reported in the issued invoices ledger or on the VAT form, but in the return for the special scheme, with records of the transactions.

Turning it on

1. Open Options → System settings → General settings → Profit center / Fiscal. 1.0 and turn on the setting Distance sales in the EU (OSS).
2. Turn it on if you are registered for OSS. It is off by default, and while it is off invoices are issued as before.

Which invoice is issued without fiscalization

With the setting on, an invoice is issued without fiscalization when the buyer is a consumer (B2C) and the goods go to an EU country other than Croatia.

• Delivery to Croatia: the invoice is fiscalized like any other, even when the buyer is from another country.
• Delivery outside the EU: this is an export and the invoice is fiscalized.
• Business buyer: the rule does not apply and the invoice is issued as before.

What counts is the country where delivery ends, not the billing address. On the invoice (Sales → Invoices → New invoice) a Delivery country list stands next to the buyer name. The default is "as buyer", the country on the client card; if the goods go elsewhere, choose that country.

Orders from WooCommerce and Shopify arrive with the delivery country on their own, and through the API it is sent in the field delivery_country_iso. WooCommerce needs the latest version of the plugin.

The VAT rate on the invoice is the one calculated by the web shop or set on the item. Kigo does not change it and does not determine which rate applies in the country of the buyer.

In invoice lists such an invoice says "No fiscalization. Buyer outside of Croatia."

OSS records

1. Open Reports → Turnover → OSS records. The item is visible only with the setting on.
2. Choose the quarter; the default is the last finished one. At the top is a table by country and rate with the number of invoices, the taxable amount and VAT, and below it the list of invoices.
3. The Excel export and PDF buttons download the same content, with one row per invoice and rate in Excel.

A cancellation is a negative line in the quarter it was issued. Pass-through items are not part of the taxable amount.

Issued invoices ledger and other reports

• Invoices in the OSS records are not in the issued invoices ledger (Knjiga IRA). The ledger screen shows how many were left out, with a link to the OSS records.
• A fiscalized invoice, for example one issued before the setting was turned on, stays in the ledger. Agree with your accountant how to treat such invoices.
• Turnover reports still show these invoices, as they are part of your sales.