Croatia Tax Agency Clarifies VAT Treatment of Advance Issued Invoices for Solar Power Plants

The Croatian Tax Administration Nov. 15 clarified the VAT treatment of advance payment invoices for the delivery and installation of solar power plant equipment. A taxpayer sought clarification as to the availability of the zero-rated VAT, effective Oct. 1, after an advance invoice was issued prior to the Oct. 1 effective date. The tax agency confirmed that in the event an advance payment was received for the delivery and installation of solar panels subject to VAT at a rate of zero percent, on which VAT was calculated at a rate of 25 percent, the supplier must issue an invoice charging ...