Croatia Extending Reduced VAT Rate for Natural Gas, District Heating, and Heating Materials

Croatia's Ministry of Finance has announced that the application of the reduced VAT rate of 5% for natural gas, district heating, firewood, pellets, briquettes, and wood chips is being extended. The application of the reduced rate was first introduced in 2022 and is currently scheduled to end on 31 March 2026. Following the approval of legislation for the extension, the reduced rate will be extended an additional year to 31 March 2027.