Croatia: VAT Rate Cut Delay

The Croatian Government recently announced that they have planned to delay a 1% VAT cut until 2020. However, they will cut VAT on basic commodities from the beginning of 2019.

The VAT rate of 25% was proposed to be cut down to 24% from January 1st 2019, but has now been delayed. The 13% standard rate will newly apply to fresh meat, fish, diapers, fruit and vegetables.

Croatia has three VAT rates:

  • 25% Standard Rate – the second-highest in the EU after Hungary.
  • 13% Reduced Rate – Applied to certain printed media, electricity supplies, baby food, among others.
  • 5 % Reduced Rate.


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