Croatia extends its 5% PDV rate on gas, heating and firewood to 31 March 2027

What changed in detail

The Zakon o izmjeni Zakona o porezu na dodanu vrijednost, item 377 in Narodne novine 32/2026 of 27 March 2026, extends Croatia’s temporary 5% PDV rate on household energy to 31 March 2027. The Hrvatski sabor adopted the act on 27 March 2026, and the President promulgated it the same day.

The act has three articles:

• Article 1 replaces “31. ožujka 2026.” with “31. ožujka 2027.” 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 2026.

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 52/2025 extension, which had itself replaced the NN 35/2024 extension.

What it means

This is the rule in force today: the 5% rate on these supplies runs until 31 March 2027. On the pattern of the past three years, any further extension would come as another one-line amendment in late March 2027. Until then, plan for the rate to rise after 31 March 2027.

One later act sits next to this one. NN 48/2026 (adopted 30 April 2026) inserted Article 38.a. It lets the Government set, by decree and for a limited time, the PDV rate on excise-liable energy products when the energy market is disrupted. It does not change Article 38(4) or (5) or their end date. A decree made under it would be a separate change, not covered by this record.