VAT Compliance Across Southeast Europe: A Comparative Guide

Operating across the six Southeast European jurisdictions we serve requires careful attention to varying VAT compliance requirements. This guide provides a comparative overview of key obligations in each country.

VAT rates across the region span from 17% in Bosnia and Herzegovina at the low end to 25% in Croatia at the high end. Between those poles: North Macedonia 18% (5% reduced), Serbia 20% (10% reduced), Montenegro 21% (7% reduced), and Slovenia 22% (9.5% reduced). For EU members Slovenia and Croatia, EU VAT directives further shape the treatment of cross-border supplies.

More significant than rate differences are the operational differences: registration thresholds, filing frequencies, e-invoicing regimes, and documentation requirements. Serbia’s SEF mandatory e-invoicing, Slovenia’s EU-aligned e-invoicing, and Croatia’s post-Eurozone implementation each impose their own integration work. Bosnia and Herzegovina operates a unified VAT system administered by the Indirect Taxation Authority despite its entity-level CIT framework.

Companies establishing regional presence should plan their VAT structure early, considering factors such as registration obligations, group VAT treatment where available, and the handling of cross-border B2B and B2C transactions. Coordinated setup is materially easier than retroactive cleanup.