Update - Croatia Extends Reduced VAT Rate for Natural Gas, District Heating, and Heating Materials

Croatia published the Law on the Amendment of the Value Added Tax Act in the Official Gazette on 27 March 2026, which extends the application of the reduced VAT rate of 5% for natural gas, district heating, firewood, pellets, briquettes, and wood chips. The application of the reduced rate was first introduced in 2022 and was previously scheduled to end on 31 March 2026. The Law extends the application of the reduced rate for an additional year to 31 March 2027.