Croatia raises VAT rate on restaurants and other services
The Croatian VAT rate on restaurants, catering services, newspapers and journals is to rise from 10% to 13%. The announcement was made as part of a range of measures in the 2014 Economic Plan. The rates will rise on 1 January 2014.
Croatia raised VAT 2% in 2013 when it joined the EU at the start of 2013,
Croatia adopted the EU VAT Directive, which governs the 28 member states’ rules on Value Added Tax when Croatia joined the EU in 2013. Whilst the EU sets the minimum standard EU VAT rates at 15% or above, and does generally permit two lower rates for social services and a range of locally provided services.
Croatia raising VAT on restaurants and the hospitality industry contrast with Greece cutting VAT from 23% to 13% on restaurants in August. Portugal wants to cut restaurant VAT to 13%.