Croatia plans to cut the standard VAT rate to 24%

1 August 2019

From 1 January 2020, Croatia plans to reduce their standard VAT rate from 25% to 24%.

At the same time, they also plan to reduce the VAT rate applicable to hospitality services provided in cafes, restaurants and hotels, from 25% to 13%. This decrease is aimed at boosting the tourism sector and mirrors the VAT treatment most EU countries apply to their travel and hospitality sectors.