Croatia joined the EU in 2013 and became one of the eurozone's newest members in January 2023, replacing the kuna with the euro. For UK sellers, the euro adoption is genuinely useful — it means the €150 threshold applies directly without any currency conversion complexity, and price transparency with Croatian customers is straightforward. Post-Brexit, UK parcels enter Croatia as third-country imports, and with a 25% VAT rate, the on-delivery charge is among the higher ones in the EU.

Croatia's VAT rate: 25%

Croatia applies a standard VAT rate of 25%, placing it alongside Sweden and Denmark at the joint highest standard rate in the EU. Only Hungary (27%) charges more. VAT is applied to the total customs value — product price plus shipping — when the parcel clears Croatian customs.

For a £100 homeware order with £18 shipping, Croatian VAT at 25% on £118 comes to £30. Added to a handling fee of approximately £7, the on-delivery charge reaches around £37 — a 37% surcharge on the purchase price. This is a meaningful number to communicate to Croatian customers before they order rather than after the parcel arrives.

Import duty on UK goods

Goods that genuinely originate in the UK qualify for 0% import duty in Croatia under the UK-EU Trade and Cooperation Agreement. Croatia is an EU member state and applies the same TCA rules as all other EU members. Standard EU duty rates apply to goods that don't meet UK origin requirements — 12% for clothing, for example. Confirm your origin status before certifying TCA preference on your commercial invoice.

The €150 threshold — simplified by euro adoption

Croatia's adoption of the euro in January 2023 makes threshold management straightforward. The €150 customs duty exemption applies directly without any conversion to a local currency. Unlike the Czech Republic (CZK), Hungary (HUF), or Romania (RON), there is no exchange rate risk to manage when pricing around the threshold for Croatian customers.

Shipments below €150 benefit from simplified customs processing. IOSS-registered sellers or those selling via IOSS-covered platforms collect VAT at checkout, meaning Croatian customers pay nothing on delivery. Above €150, 25% VAT is assessed at Croatian customs.

A practical example

A UK homeware brand ships a set of decorative items worth £100 to a customer in Zagreb.

Worked example — homeware to Croatia

Product value: £100

Shipping: £18

Total: £118 — below the €150 threshold

If IOSS-covered: VAT collected at checkout, no on-delivery charge

If not IOSS-covered: Croatian VAT (25% on £118): £30

Customs handling fee: ~£7

Potential on-delivery charge if not IOSS-covered: ~£37

A £37 surcharge on a £100 purchase is significant. For orders near the €150 threshold, the charge is even more pronounced in relative terms. Understanding the full landed cost for Croatian customers at 25% VAT is essential before setting your prices or listing terms for this market.

Croatia's e-commerce market

Croatia's e-commerce market has grown steadily, boosted by rising disposable incomes and strong tourism activity that has familiarised the population with international brands. Zagreb and Split are the primary consumption centres, but online purchasing is active across the country. Croatian consumers are generally price-conscious and appreciate transparent communication about costs — adding a note about potential import VAT for orders above €150 is especially worth doing given the high 25% rate.

Croatia joined the Schengen Area in January 2023 at the same time as its euro adoption, completing its integration into the EU's core arrangements. For parcel shipments, this means Croatian addresses benefit from the same Schengen routing available to other eurozone members.

Shipping times from the UK

Standard courier services reach Zagreb and major Croatian cities in 4–6 working days from the UK. Coastal destinations in Dalmatia (Split, Dubrovnik) are well served but may add a day for more remote areas. Some courier networks to Croatia are less developed than in western EU countries — confirm your courier's specific Croatia coverage and delivery estimates before committing to customer-facing timescales. DHL, DPD, and GLS all operate in Croatia; local carrier Overseas Express has broad domestic coverage for final-mile delivery.

Before you ship to Croatia

Calculate the on-delivery charge at 25% VAT for your typical order values, both above and below €150. Include a clear note in your listings for orders above the threshold. The hidden costs of shipping to EU customers are felt particularly acutely in high-VAT markets like Croatia, and managing customer expectations upfront is the most effective way to prevent delivery refusals and returns.