Legal entities from BiH will have the possibility of VAT refund from Croatia for a wide range of costs

(Patria) - The Employers' Association of FBiH informs the public and especially all legal entities in Bosnia and Herzegovina that from January 1, 2025, they are entitled to a VAT refund from the Republic of Croatia for a wide range of costs, including hotel accommodation, training and education, advertising and propaganda costs, rental services, fuel costs, tolls and services for trucks, and many other categories.

This change in the Croatian VAT Law, which implies the abolition of the reciprocity condition for VAT refunds to legal entities from third countries outside the EU, is the result of a long-term initiative and lobbying by the Employers' Association of FBiH, and our member – the company IMO JUNIOR from Orašje.

The Employers' Association of FBiH initiated the abolition of the reciprocity condition in the VAT Law of the Republic of Croatia back in 2017 and for years it was sent to the competent authorities of the Republic of Croatia with the aim of adoption and application.

This change brings significant savings for companies from BiH, as the VAT refund will enable them to reduce costs by as much as 25%, which is the current VAT rate in Croatia, and opens up new opportunities for business improvement and cost reduction for companies from Bosnia and Herzegovina operating in Croatia.