It is becoming increasingly common for companies based in one EU Member State — for example, Slovenia — to lease vehicles and then assign them to employees who live and work in another Member State — in this case, Croatia.
But what does the law say if such a vehicle is used exclusively within the territory of the Republic of Croatia? What are the legal obligations and tax implications?
Below is an overview of the key steps that must be taken to ensure that the use of motor vehicles registered in other EU Member States complies with Croatian legislation — without the risk of legal violations or additional costs.
What does the law say?
In accordance with Article 14 of the Special Tax on Motor Vehicles Act and Article 15, paragraph 1 of the Ordinance on the Special Tax on Motor Vehicles, natural and legal persons with residence or registered office in Croatia who use a vehicle registered in another EU Member State on Croatian roads for more than 15 days are required to:
- Notification to the Customs Administration
Before entering Croatia, notification must be submitted electronically to: motorna.vozila-ulaz@carina.hr The notification must include the following information:
● Full name, address, and personal identification number (OIB) of the vehicle user
● Vehicle make, chassis number (VIN), registration plate, country of registration
● Estimated date of entry into Croatia
● Reason for the notification (use of the vehicle on Croatian roads for more than 15 days) - Tax declaration
Within 15 days from notifying the Customs Administration, a tax declaration must be submitted using form PP-MV to the competent customs office according to the user’s place of residence or registered office, or e-PPMV application through the e-Citizens system for calculating the special tax on motor vehicles.
If this procedure is not carried out within the prescribed period, the vehicle shall be considered as being used illegally within the territory of Croatia.
What if it involves leasing or rental?
Special case: leasing or rental
If the vehicle is the subject of a leasing or rental agreement, it is possible to request a proportional calculation of the Special Tax on Motor Vehicles (PPMV) according to Table 1 of the Ordinance, under the following conditions:
● the agreement is not concluded for more than four years
● the vehicle is not intended for permanent use in Croatia
So, in our initial example:
If a Slovenian company plans to lease a vehicle in Slovenia, and that vehicle will be used by an employee residing in the Republic of Croatia — with the vehicle being used exclusively within Croatian territory — the following steps must be taken to ensure compliance with applicable Croatian regulations:
- Submit an electronic notification of vehicle use before entering Croatia
- Submit the PP-MV form to the customs office within 15 days
For many seasonal businesses that generate income only during peak months, this condition is difficult to meet. While the law allows an exception for natural persons who must show a turnover of €15,000 in the previous season, many employers warn that these rules are administratively unfeasible and could lead to cancelled reservations due to a lack of workforce.
CONEO Croatia knows what to do — and how — when it comes to customs and tax matters
The use of motor vehicles registered in other EU Member States within the territory of the Republic of Croatia requires careful adherence to legal procedures in order to avoid legal consequences and additional costs.For legal and natural persons wishing to ensure lawful vehicle use, timely notification to the Customs Administration and submission of a tax declaration are essential steps.
For any additional questions and professional support, CONEO Croatia is at your service — to help you navigate complex tax and customs situations with greater ease.
