- The Croatian government proposes extending the reduced VAT rate on heating (from 25% to 5%) and gas (held at 5% instead of 13%) for another year, until 31 March 2027.
- The VAT cuts were initially introduced in response to high inflation, which reached 12.3% in Croatia.
- The VAT reduction on heating and gas was originally set to expire on 1 April 2026.
- The changes are estimated to cost the government approximately Kn 2.1 billion (€289 million).
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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