Planned amendments to the VAT Act

As of 1^st January 2020

The standard VAT rate shall be reduced from 25 % to 24 %

Reduced VAT rate of 13 % shall be expanded to preparation and serving of food in the hospitality sector

Companies whose revenues do not exceed HRK 7,5 mil will have the option to determine VAT liability based on the cash principle

Implementation of the “Quick fixes”

VAT exemption for supplies in the public interest (see Art 132 VAT Directive) is also applicable for other persons which have no public authorization

The change of the tax base and its correction shall be possible under the following conditions:

¬	the supplier issued an invoice with HR VAT to a non-resident customer
¬	the customer provides the supplier with a written confirmation that he did not request a VAT refund under the provision of Art 67 or Art 68 VAT Act (esavjetovanja.gov.hr/ECon/).