Croatia 2020 VAT Revamp And Subsequent Measures Introduced

In the last month of 2019, Croatia published amendments on its VAT system which generally apply as of 1 January 2020. The most important changes introduced included implementation of the 2018/1910 EU Directive (harmonization and simplification for cross-border trading) in relate to call-off stock arrangements and chain transactions; a reduced 13% rate applicable to the preparing and serving meals inside/outside a catering location; as well as a change in the threshold of the cash accounting scheme (7.5 million HRK, up from 3 million HRK). Additionally, VAT liability is to be corrected when the tax base is amended in case of taxpayers not having a registered office or is not registered in Croatia.