IN THE LAST days, one of the main topics in the public eye is the prices in Croatia and Slovenia. After the introduction of the euro in Croatia, it is easy to compare prices with those in Slovenia, where the euro was introduced back in 2007.
The Tax Office actually reacted to the statement of economist Damir Novotny.
“For the purpose of truthfully and fully informing the public about the incorrect claims of Mr. Damir Novotny, Ph.D., made in the RTL Danas show on January 7, 2023, in which he says that “Slovenia has a lower tax burden on most products of daily consumption and the basic VAT rate is lower than in Croatia, and the VAT rates for food products are especially lower, which are 9.5 percent, i.e. significantly lower than in Croatia”, we draw attention to the fact that in the Republic of Croatia, on a fairly wide range of basic food products, the VAT rate is and reduced to 5%, while in the Republic of Slovenia the VAT rate on these products is almost twice as high and amounts to 9.5%,” writes the Tax Administration.
So they continue:
“In the Republic of Croatia, VAT is calculated and paid at a reduced rate of 5% on deliveries of the following goods:
* all types of bread,
* all types of milk (cow, sheep, goat) marketed under the same name in liquid form, fresh, pasteurized, homogenized, condensed (except sour milk, yogurt, kefir, chocolate milk and other dairy products), substitutes for mother’s milk,
* baby food and processed cereal-based food for infants and young children,
* edible oils and fats, of plant and animal origin, butter and margarine,
* delivery of live animals: cattle, pigs, sheep, goats, horses, donkeys, domestic poultry, rabbits and hares,
* delivery of fresh or chilled meat and edible slaughter products from: cattle, pigs, sheep, goats, horses, donkeys, domestic poultry, rabbits and hares,
* delivery of fresh or chilled sausages and similar meat products, meat slaughterhouse products or blood,
* delivery of live fish,
* delivery of fresh or chilled fish, molluscs and other aquatic invertebrates,
* delivery of fresh or chilled crabs
* delivery of fresh or chilled vegetables, roots and tubers, including leguminous dry vegetables,
* delivery of fresh and dry fruits and nuts,
* delivery of fresh poultry eggs, in shell,
* products that are mainly used as animal feed, except for pet food.
Despite this, although in the Republic of Slovenia the VAT rate on eggs, for example, is almost twice as high as in the Republic of Croatia, it is pointed out in the attachment that the price of eggs in Croatia is higher than in Slovenia. Namely, the prices of products in retail are affected by a number of factors, and tax is only one of them,” they add at the end.
