European Commission Adopts Proposal for Council Decision on Croatia Input VAT Deduction for Car Expenditures

The European Commission (EC) Sept. 9 adopted Proposed Council Implementing Decision No. COM (2024) 398, on Croatia’s extension request of the derogation from Article 168, Article 168a, and Article 26(1)(a) of the VAT Directive, in order to continue to restrict input VAT deduction rights on the purchase and lease of passenger cars, including the purchase of all goods and services supplied in connection thereto. The proposed decision includes measures to: 1) extend the derogation to Dec. 31, 2027; and 2) require any further extension request be submitted to the Commission by March 31, 2027. [European Union, EU Legal Database, 09/09/24] ...