Croatia Presents Tax Amendments Including VAT Act Changes

• Croatia has proposed a tax package including amendments to the VAT Act, but the government release does not specify the actual VAT changes (rates, exemptions, invoicing, fiscalization, or reporting rules).
• The stated goals are to simplify the tax system, align with EU law, and improve tax fairness; the package also covers personal income tax, social contributions, corporate income tax, and a new Croatian Investment Account.
• A new tax on excessive profit margins is proposed for about 1,800 large and medium-sized companies that significantly increased margins in 2026 compared with the prior three-year average.
• The excessive-profit measure would apply to profit before ordinary corporate tax, with remaining profit still taxed under the standard corporate income tax regime.
• The package also includes changes for lump-sum taxpayers, with most businesses earning up to EUR 40,000 reportedly unaffected, while higher brackets would become more progressive.

Source: fiscal-requirements.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.

---

---