Here’s a summary of VAT (Value Added Tax) rates in Croatia:
VAT Rates in Croatia
| Category | VAT Rate | Notes |
|---|---|---|
| Standard Rate | 25% | Applies to most goods and services. |
| Reduced Rate | 13% | Applies to certain goods and services such as food and books. |
| Reduced Rate | 5% | Applies to specific goods and services like certain medicines and newspapers. |
| Zero-rated Supplies | 0% | Includes exports of goods and services. |
| Exempt Supplies | Exempt | Includes certain financial services, healthcare, and education. |
Detailed Explanation:
- Standard Rate (25%): The default VAT rate in Croatia, applied to most goods and services provided within the country.
- Reduced Rate (13%): Applied to specific goods and services, including foodstuffs, certain restaurant services, and non-alcoholic beverages.
- Reduced Rate (5%): Applied to essential goods and services such as certain medicines, newspapers, and books.
- Zero-rated Supplies (0%): Exports and international transport services are zero-rated, meaning VAT is not charged, but businesses can reclaim VAT on related inputs.
- Exempt Supplies: Certain services and sectors are exempt from VAT, including financial services, healthcare, and educational services.
Additional Points:
- EU VAT Compliance: Croatia, as an EU member, follows EU VAT directives, which influences its VAT rates and rules, particularly for cross-border transactions within the EU.
- VAT Registration: Businesses must register for VAT if their taxable turnover exceeds the threshold set by Croatian tax authorities.
These VAT rates and regulations are managed by the Croatian Tax Administration and may be subject to periodic changes.