Fourth Tax Reform Round Sent to Parliament for Second Reading.
Under amendments to the Value Added Tax Act, the general VAT rate would remain 25% and a 13% rate would be applied as of next year on the preparation and serving of food in and outside restaurants. It is estimated that the lower VAT rate in the hospitality industry will reduce budget revenues by 900 million kuna annually. In relation to the first reading, the government is proposing a 13% VAT rate also for phonographic rights owners
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