Further changes to Croatia VAT rules and rates
- 4 December 2013 | Richard Asquith
Following the announcement of a rise in Croatia VAT rate from 10% to 13%, there have been further proposed changes to the Croatian VAT code.
Confirmation of Croat VAT rate rises
Croatia originally increased its standard VAT rate from 23% to 25% on joining the European Union at the start of 2013.
In September 2013 it also announced that it would raise its 10% reduced Croat VAT rate on hotels, sports and cultural events. It has now confirmed the 5% reduced VAT rate on newspapers and journals, which was have the correct authorisation and content volumes under the Croat Media Law.
These tax rises comes as Croatia struggles with a shrinking economy – GDP shrunk 0.6% in the third quarter of 2013.
Other VAT amendments
The proposed revisions also include further details of the use of bonded warehouses. These are authorised premises where goods may be imported into the EU for the first time, held and traded without goods clearance or the charge of importation VAT at 25%.
Also, a new definition of the taxable amount for the purposes of intra-community supplies has been included. This definition brings into the base import levies, transport and insurance costs.
The above measures should come into effect on 1 January 2014.