Croatia delays 1% VAT cut till 2020

Wed 15th Aug 2018

The Croatian Prime Minister, Andrej Plenković, has said that the proposed cut in the standard VAT rate from 25% to 24% may be delayed from 1 Jan 2019 to 1 Jan 2020. A VAT rate cut had been committed to in the 2016 elections by the ruling Croatian Democratic Union (HDZ) party.

The proposed cut is to the return the indirect tax rate to its pre-EU entry level at 2014.

A reduced VAT rate cut, currently 13%, may come sooner on basic foodstuffs.

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