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Croatia introduces new VAT rate and rules

  • VAT
  • 29 February 2012 | Richard Asquith

Croatia introduces new VAT rate and rules

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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.