In the final paper firstly we explain the value added tax through application and how a taxpayer canenroll in the value added tax system and who is considered a taxpayer in the Republic of Croatia. Furthermore, we show three basic rates that apply in Croatia and filing an annual application that tradesmen and businesses are required to file. Moreover, we got acquainted with the subject of the trade, we saw what kind of tradesexsist, what are the conditions and the way they operate. The advantages and disadvantages of value added tax are also shown. The aim of this final paper is to present the course of the business activities of tradesmen who are in the system of value added tax. As an example we took the trade „Bis Mora“ which provides services and we can see how the trade attaches its documentation (incoming and outgoing invoices, annual application) to the tax administration.