Croatia extends its 5% PDV rate on gas, heating and firewood to 31 March 2026

What changed in detail

The Zakon o izmjeni Zakona o porezu na dodanu vrijednost, item 673 in Narodne novine 52/2025, extended Croatia’s temporary 5% PDV rate on household energy for another year. The gazette issue is dated 21 March 2025. The Hrvatski sabor adopted the act on 14 March 2025, and 18 March 2025 is the date of the President’s promulgation decision, not of publication.

The act has three articles:

• Article 1 replaces “31. ožujka 2025.” with “31. ožujka 2026.” in Article 38(4) of the VAT Act and makes the same replacement in Article 38(5).
• Article 2 requires the Minister of Finance to align the VAT Rulebook within 30 days of entry into force.
• Article 3 puts the act into force on 30 March 2025, the day before the previous end date.

Article 38(4) covers the supply of natural gas. Article 38(5) covers heating energy supplied from heat stations, firewood, wood pellets, briquettes and wood chips. The amendment replaces the end date set by the NN 35/2024 extension.

What it means

This extension is spent: its 31 March 2026 end date has passed. It was superseded by NN 32/2026, which moved the end date to 31 March 2027, and that is the rule in force today. For invoices dated between 1 April 2025 and 31 March 2026, this act is the legal basis for charging 5% on these supplies. Croatia has renewed the measure for a year at a time, usually in the last weeks of March, so the gap between publication and the old end date has been short each time.