VATupdate

Planned amendments to the VAT Act

¬ As of 1st 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/). 

Source Leitner & Leitner