Croatia

Croatia Extends Reduced VAT Rate on
Natural Gas and Heating Products

Croatia has extended the 5% reduced VAT rate applicable to natural gas, district heating, firewood, pellets, briquettes, and wood chips through the Law on the Amendment of the Value Added Tax Act, published in the Official Gazette (Narodne novine) on 27 March 2026.

The reduced rate was originally introduced in 2022 and had been scheduled to expire on 31 March 2026. The law was adopted by the Croatian Parliament (Hrvatski sabor) at its session on 27 March 2026 and promulgated on the same date by President Zoran Milanović. With this amendment, the application of the reduced rate is extended for one additional year, through 31 March 2027.

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