Croatia raises but also lowers the VAT

The government plans to increase the normal rate of VAT in Croatia from 23 to 25 percent.

The tax on tourist services, will be decreased to 10 percent.

At socially sensitive areas the government will reserve the 0 percent.VAT rate until the EU accession. The new rates, according to Finance Minister Slavko Linic are expected to enter into force on the 1st of March – reports Világgazdaság Online.