VATupdate

No reduction in standard VAT rate, 13% VAT rate on food and dessert preparation, approval implementation Quick Fixes

On Nov 29, the Croatian Parliament approved the Tax Reform.

The changes bring a lower, 13% VAT rate on food and dessert preparation and serving in and outside catering establishments, and a lower VAT rate for holders of phonographic rights.

The tax reform also keeps the standard VAT rate of 25%, the total financial effect of that measure being 1.8 billion kuna.

Implementation of the EU Directive 2018/1910 on harmonization and simplification of VAT for cross-border trade. A so-called “quick fixes” concerning changes in respect of call-off stock arrangements, chain transactions and the exemption for intra-Community supplies of goods will apply.

Source Total Croatia news