8. July, 2022

CROATIA: Credit Institution Revolut Bank UAB in the Republic of Croatia – Tax administration opinion

The globally spread financial services of the credit institution Revolut Bank UAB have raised several issues related to changes of their operations in Republic of Croatia. In a previously issued opinion dated 27th September 2021, the Tax Administration, based on the submitted statement of the Croatian National Bank, stated that the withdrawal of income paid-in account opened in the credit institution Revolut Bank UAB, was not allowed. Namely, the credit institution Revolut Bank UAB had the option of providing limited services of receiving deposits and other repayable services, and it may not open and maintain payment accounts such as a current account or giro account.

On the 7th of June 2022 the Tax Administration issued an opinion, based on the notification submitted by Croatian National Bank in which, form the 1st June 2022, was issued approval for the Revolut Bank UAB to expand the provision of services in the Republic of Croatia, and so was the paying-in the Bank’s bank account approved.

Namely, given that Revolut Bank UAB will, from the 1st June 2022, in addition to offering deposit and other refundable services, start providing payment services, more precisely the services of opening and maintaining transaction accounts such as current account or giro account in the Republic of Croatia, The Tax Administration is of the opinion that there are no obstacles to perform payment of income to the accounts that taxpayers have opened in that bank.

In addition, the previously issued opinion of 27th September 2021, is repealed.

However, we instruct our clients to be careful when performing income payment to the transaction account of Revolut Bank UAB, since currently the payment cannot be performed in currency HRK, and the competent authorities have not issued a further instruction on how to perform payment to the respective bank account. Based on the above, further clarifications and instructions from the Central Office of the Tax Administration and the management of Revolut Bank UAB are expected.