Tax treatment of gifts in the retail environment in Croatia

Promotional gifts with a single value of up to HRK 160.00 (~22 EUR; the law was not updated to reflect the change of currency in use) without VAT, according to Article 11 of the VAT Ordinance, are not considered a taxable supply if they are advertising items with the name of a company or product, such as glasses, ashtrays, pens, tablecloths, coasters, pendants, brochures, catalogs, bags, and similar products. We ought to explore this further