The Croatian government has reduced the value-added tax (VAT) on wood chips, pellets (fuel pellets), briquettes and firewood to 5%, as well as on solar panels to zero percent, Finance Minister Marko Primorac said at a press conference on August 24 following the meeting of the cabinet of ministers where they discusses the energy crisis in the Balkan country.
In addition to the mentioned products, VAT on district heating services, including transport costs, will be reduced to 5% from the date of entry into force of the law, scheduled until March 31, 2023. The bill must be passed by Parliament.
Primorac explained that with regard to solar panels, zero percent VAT applies to already delivered and installed solar panels.
The Cabinet of Ministers wants to stimulate the use of renewable energy sources in Croatia.
In April this year, the Croatian government reduced VAT on domestic gas from 25% to 13% in the long term, and from April 1 to March 31 – to 5%.
The VAT on electricity will remain at 13%, but the difference between the increase in electricity prices and the increase in prices will be taken over by the Croatian Electric Plant (HEP).