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Catering facilities are restaurants

The Croatian Chamber of Trades and Crafts strongly opposes the provisions of the Value Added Tax Regulation that came into effect on January 1 of this year.

They are requesting urgent amendments from the Tax Administration to prevent the business operations of catering establishments that deliver food to customers’ home addresses from being compromised. Catering facilities and simple service establishments listed in the Hospitality Activity Act should not be treated differently in terms of tax from other catering establishments, they emphasize at HOK and add that people are already expressing dissatisfaction and ordering less food delivery to their homes.

The Croatian Chamber of Trades and Crafts believes that such a regulation and its interpretation demonstrate a fundamental lack of understanding of the hospitality profession, and guests who use this type of service share the same opinion.

Although the justification for this regulation states that changes are being introduced to align with European directives, the practice in competing countries is not the same. For example, in Italy, Slovenia, France, Turkey, and Spain, there is no difference in VAT between establishments where food is consumed and those that deliver food to customers.