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Company Formation Croatia



VAT on Basic Foodstuffs to Decrease Starting January 2019

Written by: Bridgewest

Reducing the VAT on basic food products has been implemented by many European countries on their way of stabilizing the market and increasing the standards of living. It will also be the case of Croatia for which the authorities decided to lower the VAT rate from 25% to 13%. This is definitely a change that is expected on the Croatian market starting with January 2019. Opening a company in Croatia is not subject to hard conditions, but foreign investors should seek support from our team of company incorporation agents in Croatia.

The consequences of a lower VAT

Increasing the profits as retailers will not be a challenge once the VAT rate will be reduced in Croatia and there are strong reasons to believe that the number of customers will upsurge as soon as this measure will get effective. Even though the retailers are not obliged to cut the prices too, there might be chances to see some changes in this direction, as recommended by the authorities in Croatia.
Knowing the VAT requirements especially for future changes will help company owners align with the new measures. In this direction, you can talk to our team of specialists who can also help foreigners set up their companies in Croatia.

The standard VAT will go down by 1%

If the VAT decrease for basic foodstuff is already established, the same thing is available for the standard VAT in Croatia which will change starting with January 2019. This means that the VAT rate will drop down to 24% from 25%. This will be the first VAT cut since Croatia joined the European Union in 2013. At the moment, the VAT rate for newspapers, magazines, and accommodations is set at 13%. As for the medical equipment purchased in Croatia, the VAT rate is 5%.
Starting a business in Croatia as a foreign investor is less restrictive in terms of formalities with the authorities in charge. However, it is best to ask for assistance at the time of company formation in Croatia, so please feel free to contact us at any time.



The team from CompanyFormationCroatia.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.

Mihai Cuc, Partner of
Enescu&Cuc; Law Firm

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