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An overview by LeitnerLeitner, Taxand Croatia
The Proposal for the Amendment to the Value Added Tax Act in Croatia was recently published under an urgent procedure. It introduces a framework allowing the government to adjust the VAT rate on energy products in special circumstances, such as market disruptions, without parliamentary approval.
This “floating VAT” mechanism aims to stabilise the market and protect consumers. The standard VAT rate for energy products is 25%, with a minimum rate of 15% as per EU regulations.
Pavo Djedović from our Croatian member firm, LeitnerLeitner, has provided a detailed overview of the proposal, which you can read here.
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