Croatia Tax Agency Clarifies VAT Rate for Liquefied Petroleum Gas in Household Bottles

The Croatian Tax Administration March 14 clarified the taxation of liquefied petroleum gas (LPG) in household bottles. A taxpayer sought clarification on the application of a 25 percent VAT rate, instead of the reduced rate for natural gas, to supplies of LPG in household bottles. The tax agency clarified that: 1) under EU Directive 2006/112/EC on the common system of VAT, a reduced VAT rate can be applied to the delivery of natural gas until Jan. 1, 2030; and 2) household bottles containing LPG aren’t subject to a reduced VAT rate, because LPG doesn’t qualify as a natural gas under ...