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Tax Alert, January 2013

A great opportunity for foreign vessel owners

A great opportunity for foreign vessel owners - Value Added Tax Act Amendments
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Value Added Tax Act Amendments introduced a 5% tax rate for vessels used for sports and leisure, which will be put into the customs procedure of free circulation by 31 May 2013. Reduced VAT rate is applicable only for those vessels used for sports and leisure which had previously been under temporary admission procedure.

Reduction of VAT rate may be a good opportunity for all foreign vessel owners for sport and leisure planning to terminate the temporary admission procedure and release the vessel in free circulation in Croatia, since such vessels will be of 1 June 2013 subject to VAT at the general rate of 25%.

Amendments entered into force on 1 January 2013.

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Helena Schmidt
Deloitte Croatia
Senior Manager
Tax services
+385 (0) 1 2351 918
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Helena Schmidt
Deloitte Croatia
Job Title:
Senior Manager - Tax advisory
+385 (0) 1 235 1918

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