ZAGREB, 7 January 2021 - Prime Minister Andrej Plenkovic on Thursday announced changes to regulations on the implementation of the General Tax Act which will exempt from VAT donations delivered to the areas affected by last week's earthquake.
"This is another important gesture, similar to the one we did at the time of measures which applied to the COVID-19 pandemic. These donations won't be burdened with either profit or income tax, they will represent tax breaks," Plenkovic said at a cabinet meeting.
At the end of last year, the Croatian Employers Association asked the government to stop charging taxes on donations for quake-hit areas, primarily VAT on the delivery of goods and services. Monetary donations are exempt from VAT but those in the form of goods and services are not.
A few days ago, the Voice of Entrepreneurs association asked the government to exempt from VAT the firms that have been unselfishly helping the people of Sisak-Moslavina County affected by the 29 December tremor.
