ZAGREB, July 28, 2020 – The Voice of Entrepreneurs association (UGP) on Tuesday called for lowering of the standard 25% Value Added Tax rate to 13% on services provided by hairdressers and fitness studios, explaining that this would be benefit the state budget in the long run and would also create more jobs.
The association presented the findings of an analysis showing that a lower VAT on those services would have multiple positive effects on employment and doing business.
The UGP said that hairdressing is one of the few occupations that have survived changes introduced by the Internet.
The association says that hair salons are mostly small businesses that have managed to remain on the market, but there are fewer and fewer of them and therefore it is necessary to address the issues bothering them in a serious manner.
The lower VAT, the less grey economy
The UGP said that a lower VAT for hairdressers and fitness studios would help reduce the grey economy.
By reducing the VAT rate, the authorities would encourage doing business legally, and consequently, there would be more revenues in the state budget, it added.
