In the Future, Those Who Donate Food Will Be Stimulated

It is estimated that between 300,000 and 400,000 tons of food are wasted annually in Croatia, said Minister of Agriculture Tihomir Jakovina, adding that the food donation system will be improved and upgraded, and in the future, models for stimulating those who donate food will be considered, as well as sanctions for those who waste food.

As of today, December 8, food donations are exempt from value-added tax (VAT), creating conditions for the full implementation of the food donation system.

He reminded that food donation was enabled by the Agriculture Act, passed in early March, but that implementing regulations needed to be adopted. The Ministry of Agriculture adopted the Regulation on the Conditions, Criteria, and Methods of Food and Animal Feed Donation at the end of October, and the Ministry of Finance published amendments to the VAT Regulation at the end of November, which came into effect on December 8.

– The Republic of Croatia now has established rules for food donation for the first time to stop the devastating trend of food waste, but also to ensure that donated food reaches the plates of those who need it most, said Jakovina.

He noted that it was important to ensure the health safety and quality of the food being donated, to avoid any discrimination against those who need assistance in products, and to reduce the amount of food wasted annually in Croatia.

The Regulation on the Conditions, Criteria, and Methods of Food and Animal Feed Donation stipulates the conditions, criteria, and methods for food and animal feed donation, the conditions that intermediaries and final recipients of donations must meet, and the content and manner of maintaining the register of intermediaries.

Amendments to the VAT Regulation stipulate that taxpayers who donate food to prevent its destruction, protect the environment, or assist final recipients, in accordance with the Regulation on the Conditions, Criteria, and Methods of Food and Animal Feed Donation, will have such food donations recognized as a shortfall on which VAT will not be calculated, provided that the value of such donations does not exceed two percent of the revenue or receipts from the previous year.

Jakovina also commented in a statement to journalists at the Ministry of Agriculture on the registration of another Croatian product at the EU level – Drniš prosciutto.

Every designation means a lot because each such product automatically has two to three times the potential sales value, said Jakovina.

He listed some of the benefits of product protection, including recognizability, the impossibility of misuse by other producers, and added value for producers and family farms that produce this product.