Croatia clarified the VAT treatment of pharmaceutical products imported without marketing authorization, confirming a 5% reduced rate for prescription medications with HALMED or EC approval. The clarification was issued by the Croatian Tax Administration on 25 June 2026.
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VatCalc · 5 months ago
Croatia has extended its VAT reduction on heating and gas until 31 March 2027. The heating VAT remains at 5% (down from 25%) and gas VAT is temporarily cut to 5% before returning to 13%. The cuts cost about €289 million.
The Dubrovnik Times · 5 months ago
Croatia has announced it will extend the reduced 5% VAT rate on certain energy products until March 31, 2027, to help curb inflation. The measure covers natural gas, district heating, and various wood fuels, and the extension is expected to forgo about €47 million in revenue. Without the extension, the rate would revert to 13% at the end of March 2026.
Bloomberg Tax · 5 months ago
Croatia's Official Gazette published Ordinance No. 90, amending the VAT Ordinance. The ordinance introduces new reporting requirements for food donations, updates vehicle registration procedures to require proof of VAT payment, simplifies VAT documentation for nonresidents, clarifies invoice issuance rules, extends filing deadlines, and amends information reporting for specified goods.
Global VAT Compliance · 6 months ago
The European Court of Justice ruled that Croatian VAT authorities cannot deny intra‑Community supply exemptions solely because a trader has not supplied the specific evidence required under Article 45a of Implementing Regulation No 282/2011. The court requires a full assessment of all evidence to determine whether goods were dispatched or transported between Member States. Businesses can still claim the exemption if alternative evidence demonstrates transport between Croatia and Slovenia.
Bloomberg Tax · 6 months ago
The EU Official Gazette published a preliminary ruling from the ECJ on Jan. 12, 2026, concerning Croatian VAT rules for intra‑community supplies of goods. The case involved a Croatian trading company supplying oak logs to Slovenia and claiming a VAT exemption, which was challenged for lack of documentation under Article 45a of Regulation 282/2011. The ECJ held that Directive 2006/112/EC and Regulation 282/2011 must be interpreted accordingly.
The Invoicing Hub · 6 months ago
Croatia has made e-invoicing mandatory for B2B and B2C transactions for all VAT-registered businesses from 1 January 2026, with a second stage extending the requirement to non‑VAT entities on 1 January 2027. The mandate, known as “Fiscalization 2.0”, was implemented in two stages and follows the ordinance published on 17 December 2025. The Croatian Tax Authority has denied reports of system instability and will not grant a grace period.
Key Takeaways
As of 25 June 2026, Croatia's Tax Administration confirms a 5% reduced VAT rate for prescription medications with marketing authorization by HALMED or the EC.
On 25 June 2026, the Croatian Tax Administration clarified the VAT treatment of pharmaceutical products imported without marketing authorization.
Yes, the 5% reduced VAT rate applies to such products, as clarified by the Croatian Tax Administration on 25 June 2026.
The Croatian Tax Administration issued the clarification on 25 June 2026.
Primary source
Read the full article at Bloomberg TaxThis summary was published on VATfaqs.com on 16 July 2026. It relates to VAT developments in Croatia. The original source is Bloomberg Tax.
