ZAGREB, July 16, 2020 – Finance Minister Zdravko Maric said on Thursday that it is not true that VAT in tourism and hospitality is 25%, since it is generally 13%.
Asked whether a VAT reduction was on the cards as called for by some of the entrepreneurs Minister Maric first said that VAT is a neutral item for payers but that he presumes they are referring to the hospitality sector.
He went on to say that that was one of the topics discussed over the past few days with representatives of that sector.
“The only segment in tourism that has a VAT of 25% is delivering beverages to hospitality facilities. Everything else is practically at 13%: from accommodation to delivering and serving food hence if we look at it overall, VAT in tourism is 13%,” said Maric.
He announced that the new government would continue with tax cuts at the “same pace” as until now. He recalled that the incumbent government began cutting taxes practically at the start of its term in power.