Croatia introduces new VAT rate and rules
- Feb 28, 2012 | Richard Asquith
The Croatian VAT authorities have adopted new VAT rules and standard VAT rate under a new VAT law. Key changes include:
- There are new restrictions on the deductibility of input VAT in returns. These include: supply of aircraft; land transportation vessels; cars; buses; and other road vehicles.
- The VAT registration threshold has risen from HRK 80,000 to HRK 230,000.
- The standard VAT rate has risen from 23% to 25%
- The reduced VAT rate, currently 10%, has been extended to include baby food, water supplies and sugar.
- The above changes are effective from 1 March 2012.