FAQ and Tips

Here you can find answers to frequently asked questions:

1. How to issue an invoice?
2. How to create a price list?
3. How to maintain the "Record of Turnover (EP Form)"?
4. What should I know about advance payments (deposits)?
5. What is the TZ 2 Form?
6. Which additional services are we allowed to provide to guests?
7. What are the general obligations of a renter (checklist)?

1. How to issue an invoice?
A renter providing hospitality services in a household is obliged to issue an invoice for every service provided and charged. The invoice can be handwritten using a standard "Invoice Receipt Book" (Račun) purchased at a bookstore or Narodne Novine, or you can create and print it yourself (e.g., using Word or Excel). It is essential that the invoice contains all legally required elements.

For renters in the VAT system, the same rules apply, but the VAT amount must be specifically stated. Renters who do not include the tourist tax in their price must specify the individual tourist tax amount (based on the guest's age) and the total amount.

Invoice Elements: Invoices are issued according to the valid price list and must include:

Renter’s full name and OIB (Tax ID), guest’s full name, invoice number and date, type of service, quantity, price, any approved discounts (in euros), total amount, and signature. The amount must always be expressed in the official currency – euros. You must keep a copy of each invoice for your records.

Renters who pay the tourist tax as a fixed annual lump sum do not list the tax separately on the invoice, as it is included in the price (with the note: "Tourist tax is included in the accommodation price"). According to the VAT Act, the following note must be included: "VAT exempt under Art. 90, Para. 2 of the VAT Act" (Oslobođeno PDV-a prema čl. 90. st. 2. Zakona o PDV-u). All issued invoices must be regularly entered into the Record of Turnover (Evidencija o prometu) at the end of each day.

What if a guest requests an "R1" invoice? If you are a private renter, you will issue a standard invoice with all required elements. It will not bear the "R1" mark because private renters are not subject to corporate income tax. However, such an invoice is a legitimate document for justifying accommodation costs, just like R1 or R2 invoices.

Agencies based in Croatia
a) When the agency acts "in its own name, but for the account of another": The agency "buys" your service. The agency issues an invoice to the guest for the full amount (including commission). The renter issues an invoice to the agency for the accommodation amount excluding the agency commission. To explain the price difference, the commission can be shown as a discount on the invoice issued to the agency.

b) When the agency acts "in its own name and for its own account": The agency is essentially your "direct guest." The renter issues an invoice to the agency for the agreed amount (as per the price list).

c) When the agency acts "in the name of another and for the account of another": The agency is a mediator. The agency invoices the renter for the mediation service, and the renter invoices the guest directly for the full amount.

Agencies based outside of Croatia (e.g., Booking.com, Airbnb)
Renters working with foreign agencies are obliged to pay VAT on the agency commission. This requires obtaining a VAT ID number from the Tax Administration. Even if the agency (e.g., Booking.com) processes the payment, the renter is still obligated to issue an invoice to the guest for the full agreed amount (including the commission).

2. How to create a price list?
Every renter must have a price list. It is the renter's sole responsibility to create it. Prices must be clearly displayed in euros in every accommodation unit.

Basic elements of a price list:

• Property name, owner’s full name, address, and OIB.
• Service type (overnight stay, breakfast, etc.).
• Billing type (per night, per person, per unit, weekly...).
• Periods (list all date ranges if prices vary).
• Price (must be in euros).
• Tourist tax (state if it is included in the price).
• VAT note (if not a VAT payer: "VAT is not included in the price according to Art. 90, Para. 2 of the VAT Act").
• Additonal services (pet fees, extra beds, etc.). Note: services like bike or boat rentals require specific licenses.
• Discounts (exact specification).

Validity date and owner's signature. Old price lists must be kept for 8 years.

3. How to maintain the "Record of Turnover" (Evidencija o prometu)?
This is a chronological record of issued invoices for each calendar year. It must be updated daily. It can be kept manually (book), via the "EP Form," an Excel sheet, or through the eVisitor system (under Finance – Turnover).

4. What should I know about advance payments (deposits)?
Deposits usually range from 10% to 50%. It is crucial to send the Cancellation Policy to the guest before confirming the reservation. Example of a flexible cancellation policy:

• 100% refund for cancellations 60+ days before arrival.
• 50% refund for cancellations within 30-60 days.
• 0% refund for cancellations within 14 days. Transaction fees for refunds are typically borne by the guest, unless the renter is responsible for the cancellation.

5. What is the TZ 2 Form?
Individual taxpayers subject to the membership fee must submit the 'TZ 2 Form' to the competent Tax Administration office. As of January 1, 2025, all tax returns and data (including the TZ 2 Form) must be submitted electronically via the ePorezna system or the mPorezna mobile app.

6. Which additional services are we allowed to provide?
Allowed (if listed in the price list): Pets, extra beds, short stays (less than 3 nights), or breakfast (only if included in your official Rental Permit/Rješenje). Not allowed (for private renters): Bike rentals, transfers, organizing excursions, or providing breakfast if it is not in your permit. These require a registered business (obrt) or company.

7. Renter's obligations (checklist)
a) Payments: Tourist tax, income tax, tourist board membership fee, VAT on foreign agency commissions
b) Documentation: Submit the TZ 2 Form via ePorezna/mPorezna
c) Signs: Display the official standardized categorization plaque at the entrance and a number on each unit door
d) Notices: Clearly display instructions on how to file a written complaint
e) Safety: Have one first aid kit in the building and an evacuation plan displayed on the exit of each unit
f) F&B: If serving breakfast, display signs prohibiting the sale of alcohol to minors and official food/drink preparation standards (normativi)