Croatian VAT proposals
In recent proposals, the Croatian tax authorities have outlined their intention to make restaurant and catering services subject to the standard rate of 25%, rather than the reduced rate of 13% which currently applies. This change would be effective from 1 January 2017.
In addition, effective from 1 January 2018, it is proposed that the standard rate of VAT will decrease from 25% to 24%, and the two existing reduced rates of 5% and 13% will be removed, and replaced with a single reduced rate of 12%.
We await confirmation of these changes.