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Croatia Plans Value-Added Tax Cut For Food

by Ulrika Lomas, Tax-News.com, Brussels

07 October 2015


Croatia's Finance Minister, Boris Lalovac, has announced that the Government is considering lowering VAT on certain foodstuffs.

Lalovac said that he plans to create a new VAT rate of 13 percent for certain food products, which would be substantially lower than the headline 25 percent rate.

The reduced rate would apply to fresh fish, cabbage, chard, potato, strawberries, mandarins, apples, eggs, and honey.

Lalovac stated: "We are aware that the VAT rate on imports of those products will be lower as well, but the rate will nonetheless boost domestic production." He added that he has no plans to reduce the VAT rate on meat.

TAGS: compliance | Finance | VAT rates | tax | tax incentives | VAT legislation | tax credits | food | legislation | tax planning | tax breaks | tax reform | Croatia | services | VAT goods & services classification | VAT compliance matters

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