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Croatia recently published a decrease of the standard VAT rate from 25% to 24% as from 1 January 2018. There are also important changes on the VAT rate on restaurants, which will be increased from 13% to 25%.
VAT rates have been generally increased across Europe since the start of the economic downturn in 2008. Countries used Value Added Tax as one of their sources of revenue to meet their budget requirements. However, certain countries recently published plans to decrease VAT rates as economic forecasts improve. Romania plans a significant reduction of their VAT rate and Hungary recently announced a reduction of its VAT rate in restaurant supplies.
In addition to the above changes, Croatia also announced a minimum period of 3 years to keep a VAT registration and an updated registration threshold of HRK 300,000 as from 1 January 2018.