15
American Chamber of Commerce in Croatia
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Call for a Uniform VAT Rate Applicable to Medicinal Products and Medical Devices

Call for a Uniform VAT Rate Applicable to Medicinal Products and Medical Devices

In Croatia, different VAT rates are applied to medicines and medical products depending on whether they are prescription or over-the-counter, and whether costs are covered by the Croatian Health Insurance Fund (HZZO) or by the patient.

This creates inconsistencies with EU Directive 2006/112/EC, which requires equal taxation of similar goods and services. As a result, the same active substance may be taxed at different rates, and Croatian consumers often purchase over-the-counter medicines in neighboring countries where VAT rates are lower.

AmCham proposes introducing a unified reduced VAT rate (below the standard 25%) for all medicines and medical products, regardless of prescription status or payer. This would align Croatian legislation with EU rules and improve affordability and accessibility of medicines for Croatian citizens.