In Croatia, the average VAT rate will be increased to 13%

In Croatia, the average VAT rate will be increased to 13%

The Croatian government has decided to increase the average VAT rate from 10% to 13%, in order to reduce the budget deficit. First of all, this decision will affect the tourism industry, restaurant operations and food, according to ee24.com citing BalkanPro.ru.

Currently in Croatia there are just three VAT tax rates: the total of 25% and two reduced rates - 10% and 5%. The previous zero rate of VAT has been canceled due to the country's accession to the EU, where the minimum allowable level of the rate is 5%. The minimum VAT exempt baking bread, milk production, publication of books and scientific journals, making medicines and orthopedic devices, sales of movie tickets.

According to Croatian Finance Minister Slavko Linich, the maximum rate of VAT,, which reached 25% in February 2012, will rise no more, and the possible change in the minimum wage will be discussed later.