The Croatian Entrepreneurs’ Association (UGP) has urged the government to implement a uniform VAT reduction on food products, arguing that high VAT rates contribute to rising living costs and inflation. This call comes amid growing public frustration, with consumer groups organizing boycotts to protest price increases and Croatia recording the highest inflation rate in the eurozone at 4.5% in December 2024.
Croatian Entrepreneurs’ Association Urges Uniform VAT Reduction on Food
Public
Croatia
Author: Ivana Picajkić
Category:
Fiscal subject related
Views:
679
Content accuracy validation date:
05.02.2025
Content accuracy validation time:
08:28h
The Croatian Entrepreneurs’ Association (UGP) has called for a uniform reduction in the value-added tax (VAT) on food products, citing significant price increases that are affecting consumers. This appeal comes in response to consumer protection associations' announcement of a boycott aimed at highlighting high prices and what they perceive as the greed of traders, who they blame for driving inflation.
The call for a VAT reduction has gained support from both opposition and government parties, encouraging Croatian citizens to refrain from purchasing goods in stores, cafes, restaurants, and gas stations on a designated day to protest against unjustified price hikes. The situation is exacerbated by recent data indicating that Croatia recorded the highest inflation rate in the eurozone at 4.5% in December 2024, up from 4.0% in November. Additionally, suppliers have indicated further price increases due to rising raw material costs.
According to the Croatian Statistical Office, sectors such as hotels and restaurants have seen the highest annual price increases, with a 9.6% rise, while services overall increased by 6.7%. Food and beverage prices have also risen by 4.8%. The UGP attributes these escalating costs primarily to high VAT rates on food.
Croatia operates with three different VAT rates:
- 5%: Applies to basic foodstuffs such as bread, milk, eggs, fresh meat, fruits, and vegetables,
- 13%: Covers items like oil, butter, margarine, and baby food,
- 25%: Applies to all other food products not classified under the lower rates.
The UGP argues that Croatia's VAT on food is among the highest in the EU and significantly contributes to rising living costs. They also highlight systemic issues within the country, including labor shortages and low production levels that further complicate economic conditions for citizens.
The UGP's call for a uniform reduction in food VAT reflects broader concerns about affordability and economic stability in Croatia. As inflation continues to impact various sectors, including essential goods and services, the association emphasizes the need for policy changes to alleviate financial pressures on consumers.
Other news from Croatia
Croatia Introduces eReporting System within Fiscalization 2.0
Public
Croatia
Author: Vukašin Santo
Croatia
Author: Vukašin Santo
As part of Croatia’s new Fiscalization 2.0 framework, the Tax Administration introduced eReporting (eIzvještavanje) via the FiskAplikacija platform, enabling taxpayers to submit and view data on deliveries, invoice rejections, and payments in real time. Through FiskAplikacija or web services, issuers must report invoice and payment data according to prescribed XML standards, ensuring synchronizat... Read more
The Implementation of Fiscalization 2.0 in Croatia
Croatia
Author: Vukašin Santo
Croatia’s Fiscalization 2.0 introduced major changes starting September 1, 2025, including the removal of fiscalization for accompanying documents and the abolition of cheque-based receipt fiscalization. These updates required middleware solutions to be restructured to maintain compliance. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: Q&A from the webinar: Introduction to Fiscalization 2.0 in Croatia
Croatia
Author: Vukašin Santo and Ištvan Božoki
On September 25th, 2025, Fiscal Solutions organized a free webinar on the topic of "Introduction to Fiscalization 2.0 in Croatia." The webinar was held by Fiscal Solutions Legal Consultant Vukašin Santo and Technical Consultant Ištvan Božoki. Let’s find out more about answers to questions asked during the webinar. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New webinar was uploaded: Recorded webinar: Introduction to Fiscalization 2.0 in Croatia
Croatia
Author: Vukašin Santo and Ištvan Božoki
Croatia is moving into the next era of fiscalization – Fiscalization 2.0. On September 25 , 2025, Fiscal Solutions organized a free webinar on the topic „Introduction to Fiscalization 2.0 in Croatia“ The webinar was held by Nikolina Basić, Legal Consultant at Fiscal Solutions. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New event was created: Reminder - Join our free webinar: Introduction to Fiscalization 2.0 in Croatia
Public
Croatia
Author: Vukašin Santo and Ištvan Božoki
Croatia
Author: Vukašin Santo and Ištvan Božoki
Croatia is moving into the next era of fiscalization – Fiscalization 2.0. This upgrade means enhanced reporting, deeper integration with business software, and real-time transaction monitoring by the Tax Administration. 📅 𝐋𝐢𝐯𝐞 𝐖𝐞𝐛𝐢𝐧𝐚𝐫 – 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝟐𝟓𝐭𝐡 𝐚𝐭 𝟑 𝐏𝐌 Here’s what we’ll cover: 1️⃣ Current state of fiscalization in Croatia2️⃣ Fiscalization 2.0 – introduction & i... Read more
Croatia Announced Intensified Tax Inspections Until Year-End
Public
Croatia
Author: Vukašin Santo
Croatia
Author: Vukašin Santo
From September 20 to December 31, 2025, Croatia’s Tax Administration will conduct intensified inspections focusing on tax reporting, bookkeeping, and payroll compliance in high-risk sectors. Targeted industries include specialized construction, retail trade (especially e-commerce and foreign VAT obligations), and sports and recreational activities such as gyms and play centers. The Croatian Tax Ad... Read more
New event was created: Join our free webinar: Introduction to Fiscalization 2.0 in Croatia
Public
Croatia
Author: Vukašin Santo and Ištvan Božoki
Croatia
Author: Vukašin Santo and Ištvan Božoki
Croatia is moving into the next era of fiscalization – Fiscalization 2.0. This upgrade means enhanced reporting, deeper integration with business software, and real-time transaction monitoring by the Tax Administration. 📅 𝐋𝐢𝐯𝐞 𝐖𝐞𝐛𝐢𝐧𝐚𝐫 – 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝟐𝟓𝐭𝐡 𝐚𝐭 𝟑 𝐏𝐌 Here’s what we’ll cover: 1️⃣ Current state of fiscalization in Croatia2️⃣ Fiscalization 2.0 – introduction & i... Read more