Advance Invoicing

In the Republic of Croatia, advance terms of payment may be negotiated in sales contracts.

If an advance payment is received from a customer then a legal advance invoice must be issued by a supplier with VAT calculation applied to advance invoice amount in case the final delivery invoice is not issued in the tax period of received advance payment. VAT amount on received advances must be declared in VAT declaration in the tax period of the issued advance invoice.

Advance receipt information must be printed in the final delivery sales invoice to decrease an outstanding balance of invoice.