Lower VAT rates on selected goods and services from 1 April 2022

Croatia

Recent energy price hikes have triggered price increases in many sectors including consumer goods. In order to cushion these price hikes, VAT rates have been lowered on certain goods and services.

Instead at 13%, the following is now taxed at a reduced rate of 5%:

  • edible oils and fats;
  • baby food;
  • certain live animals and fish, fresh and chilled meat, sausages, fish, crabs;
  • poultry, eggs;
  • fresh and chilled vegetables; fresh and dried fruit and nuts;
  • seeds and seedlings, fertilisers, pesticides; and
  • concert tickets.

Instead of the standard rate of 25%, a reduced rate of 5% now applies to:

  • butter and margarine, and
  • tickets for sporting and cultural events.

Instead of the standard rate of 25%, a reduced rate of 13% now applies to:

  • natural gas and heat energy;
  • pellets, briquette, wood chips and firewood; and
  • sanitary products.

Exceptionally, a VAT rate of 5% applies on the supply of natural gas until 31 March next year.

It remains to be seen to which extent these reduced VAT rates will bring down prices for end consumers.