The Value Added Tax Act, from 1 July 2013, prescribes the transfer of tax liability i nthe case of construction works between two taxpayers in the territory of the Republic of Croatia in such a way that value added tax is payable by the recipient of the service. It is a "reverse taxation procedure" according to which the tax liability is ransferred to the recipient of the supply and they are obliged to calculate the VAT. The transfer of the tax liability in construction is prescribed by Article 75, paragraphs 2 and 3 of the Value Added Tax Act. The transfer of calculation and payment of VAT to the recipient of services is, in fact, a transfer on the principle of self-taxation of construction services related to the construction, maintenance and reconstruction or removal of buildings, including repair and cleaning services and assignment of construction staff; delivery of real estate in the enforcement procedure; transfer of greenhouse gas emission permits; and, from 01.01.2015, the delivery of real estate when the supplier decided to tax. The transfer of tax liability for services in the construction industry, according to Article 64, paragraph 3, item a) applies only i ntransactions between taxpayers registered in the VAT Register in the Republic of Croatia and not in transactions with foreign taxpayers.