Plenković: Government Prepares Temporary VAT Cut as Last Resort Against Rising Energy Prices

• The Croatian government is considering reducing the VAT rate as a last resort to address rising energy prices.
• Amendments to the VAT law are being prepared to allow temporary, bi-weekly adjustments if necessary.
• The government has already reduced some excise duties and distributors’ margins and is seeking further flexibility from the European Commission.
• The VAT rate cannot go below 15% due to EU regulations, and the measure will only be used if energy prices escalate significantly.
• The government wants to have this tool available but does not plan to use it immediately unless circumstances worsen.

Source: glashrvatske.hrt.hr

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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