VAT Rates in Croatia
VAT is harmonized in the EU by defining the level of VAT rates for between all member states. The directive sets the framework for the harmonization and states that VAT rate must be no less than 15%. There is no maximum set for VAT rates.
A taxable transaction occurs when the goods or services offered are subject to a VAT rate, which may include zero rates. In Croatia, the standard VAT rate is 25%. However, certain goods and services are subject to reduced rates of 13% and 15%, while others are exempt or subject to a 0% VAT rate.
To get updated regarding all VAT rates in Croatia view our table below.
VAT Rates in Croatia
Standard VAT rate |
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| A standard VAT (Value-Added Tax) rate is each country’s most typical VAT rate applied to goods and services. It is applied to the majority of goods and services, with some exceptions, such as essential items or other specific goods or services that may have a reduced rate and are presented below. | ||
| Rate | Good or Services | |
| 25% | All goods or services not included in the reduced rates table below | |
Reduced VAT rates |
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| Certain goods and services are eligible for reduced VAT rates. Essential items or other specific goods or services that may have a reduced VAT rate are presented below. | ||
| Rate | Good or Services | |
| 13% | “First Reduced rate” | |
| Accommodation services, including accommodation with breakfast, half board, or full board in hotels or facilities of similar purpose, as well as accommodation during vacations, renting space in holiday camps or in places designated for camping and accommodation in nautical tourism vessels. | ||
| Certain newspapers and magazines. | ||
| Children’s car seats and baby diapers. | ||
| Menstrual supplies. | ||
| Public water supply, except for water sold in bottles or other packaging. | ||
| Electricity supplied to another supplier or end-user, including related fees. | ||
| Supply of natural gas and heating from thermal stations, including related fees. | ||
| Public waste collection services. | ||
| Urns and coffins. | ||
| Services and related copyrights of writers, composers, and artistic performers and holders of phonogram rights who are members of relevant organizations for the collective exercise of rights which perform this activity under special regulations in the field of copyright and related rights and with the prior approval of the state administration body responsible for intellectual property. | ||
| Catering services provided within and outside a catering facility. | ||
| 5% | “Second reduced rate” | |
| Bread. | ||
| Milk, dairy products, and breast milk substitutes. | ||
| Books of professional, scientific, artistic, cultural, and educational content that don’t serve as advertisements or consist mainly of video or music content and are provided by approved publishers. | ||
| Approved medicines. | ||
| Certain medical equipment, aids, and devices. | ||
| Daily newspapers from publishers with a media statute that don’t serve as advertisements or consist mainly of video or music content. | ||
| Scientific journals. | ||
| Tickets for cinema, concerts, sports events, and cultural events. | ||
| Baby food and processed cereal-based food for infants and small children. | ||
| Edible oils and fats of plant and animal origin, butter, and margarine. | ||
| Live animals, such as cattle, pigs, sheep, goats, horses, donkeys, domestic poultry, rabbits, and hares. | ||
| Live animals, such as cattle, pigs, sheep, goats, horses, donkeys, domestic poultry, rabbits, and hares. | ||
| Certain fresh or chilled meat, fish, and vegetables. | ||
| Seedlings and seeds. | ||
| Fertilizers, pesticides, and other agrochemical products. | ||
| Animal feed products, excluding pet food. | ||
| 0% | Zero rated products | |
| Goods that are exported. | ||
| Goods that are supplied to a taxable person in another EU member state. | ||
| International transport of passengers, except by road and rail. | ||
| The final importation of goods, if the supply of such goods by a taxable person would always be exempt. | ||
| Work on movable property that is temporarily imported into Croatia for services by a person without a fixed establishment or habitual residence in Croatia, and then transported outside the EU. | ||
| Goods supplied for the fueling and provisioning of passenger, commercial or rescue vessels used for navigation on the high seas. | ||
| Goods and services supplied under diplomatic and consular arrangements, to any other EU member state for the NATO armed forces, for implementing EU security activities, and to the EU, the European Central Bank, and similar European organizations. | ||
| Gold supplied to central banks. | ||
Exempt From VAT |
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| Insurance and reinsurance. | ||
| Granting and guaranteeing loans (excluding taxable debt collection services, including those of factoring agents). | ||
| Services related to bank accounts and means of payment (excluding collectables). | ||
| Transactions in shares, debentures, and other securities. | ||
| Investment fund management. | ||
| Postage and state stamps. | ||
| Lottery and casino games, betting, and gambling. | ||
| Certain supplies of immovable property. | ||
| Hospital treatment, medical care, and related services provided by public authorities or nonprofit institutions. | ||
| Medical care provided by qualified medical and paramedical professionals. | ||
| Organs, blood, and breast milk. | ||
| Supply of dental prostheses delivered by dental technicians and dentists, and services performed by dental technicians. | ||
| Certain “cost-sharing” services provided to members of associations that perform activities in the public interest and are VAT-exempt or not taxable persons, if the services help members conduct their business activity. | ||
| Certain public welfare and social services, protection of children and youth, educational services, services and closely related supply of goods provided by nonprofit legal entities (with political, trade union, religious, patriotic, philosophical, charitable, or other charitable goals) to their members in exchange for a membership fee. | ||
| Certain fitness and sports services, cultural services, and fundraising proceeds. | ||
| Transportation of sick or injured persons in special vehicles. | ||
| The supply, acquisition, and importation of investment gold within the EU. | ||
Numerous nations introduced temporary modifications to their VAT rates in response to COVID-19. VAT rate reductions on products and services sold by companies that were particularly hit hard by the pandemic’s economic fallout.
To learn more about the implications of COVID-19 in Croatia and get informed on the latest VAT news visit our Global VAT News page by clicking here.
If you wish to get informed about all VAT rates in Europe of VAT rates in the World you can view our dedicated page by clicking on the respective title.
Last Updated: 29/12/2023
Disclaimer
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