This article outlines the requirements for submitting business travel and expense claims in Croatia. Following these steps ensures that per diems and expense reimbursements are processed correctly and in line with applicable Croatian tax regulations.
1. Complete Travel Orders With All Required Details
Every business trip must have a completed travel order. To ensure your per diems are calculated correctly, include the following on every travel order:
Date and time of departure and return
Country of travel (domestic or international)
Purpose of the trip
Means of transportation (car, airplane, train, bus, etc.)
If travelling by car outside Croatia: Include the exact time you cross each border, for both the outbound and return journeys. For example, for a trip to the Czech Republic, record the times you cross into Hungary, Slovakia, and the Czech Republic, and the corresponding crossings on your return. You can add this in the notes section of the travel order.
If travelling by airplane: Attach your flight itinerary so per diems can be calculated based on actual departure and arrival times.
Border-crossing times are frequently missing from travel orders. Please make sure to include them for all car travel outside Croatia.
Please also note that completing the business trip report is mandatory. The exact time of crossing the border is crucial for calculating foreign per diems, as the entitlement to a foreign or domestic per diem is determined based on the number of hours spent on the business trip.
2. Link Every Receipt to the Correct Travel Order
Each travel order has a unique reference number. Write this reference number on every receipt before scanning or submitting it. This allows each expense to be clearly matched to the correct business trip.
Please also ensure that all expenses submitted under a travel order are directly related to company business activities.
3. Request R1 Invoices for Business Expenses
When purchasing goods or services on behalf of the company, always request an R1 invoice using the following company details:
Company name | HORIZONS GLOBAL TECHNOLOGY d.o.o. |
Tax ID (OIB) | 80589668074 |
Providing these details to the supplier ensures the company information appears on the invoice and allows the expense to be properly identified as a company expense.
4. Tax-Free vs. Taxable Reimbursement
You can use your personal bank card to pay for legitimate business expenses. However, whether the expense can be reimbursed tax-free depends on how the invoice is issued:
Invoice issued in the company’s name (R1): The expense can generally be reimbursed to you as a tax-free business/material expense, subject to applicable requirements.
Invoice issued in your personal name: The expense cannot be reimbursed as a tax-free business expense. It must instead be processed through payroll as gross taxable compensation, with applicable taxes and social security contributions.
Always request invoices in the company's name when making business purchases. Reimbursing significant amounts as tax-free expenses without company-issued documentation can create compliance risks and may attract scrutiny from tax authorities.
5. Personal Mobile Phone Expenses
For employees who use a personal phone for business purposes and whose phone bill is issued in their own name, the reimbursement can no longer be processed as a tax-free expense.
This month: Phone expense reimbursements will continue to be processed as usual.
Starting next month: If a phone allowance needs to be provided, your client will need to add a new allowance through a contract amendment. This allowance will be processed as taxable income through payroll.
If the invoice is issued in the company's name: The expense may still be processed as a tax-free business expense, subject to applicable requirements.
Summary of Requirements
Include all required details on every travel order, including border-crossing times when travelling by car outside Croatia.
Write the travel order reference number on every receipt before submitting it.
Request R1 invoices using the company's details (HORIZONS GLOBAL TECHNOLOGY d.o.o. / OIB: 80589668074) whenever making business purchases.
Be aware that invoices issued in your personal name will be processed as taxable income rather than as a tax-free reimbursement.
We understand that some of these requirements may differ from previous practices. Thank you for your cooperation in helping us ensure that expenses are processed correctly and in compliance with Croatian tax requirements.
For per diem rates and time calculation rules, see What is the Expense reimbursement policy in Croatia?