HOK: VAT increase in catering is contrary to the Constitution of the Republic of Croatia!

first_imgThe Croatian Chamber of Trades and Crafts supported the tax reform adopted by the Croatian government in the part where changes to tax laws can contribute to relieving craftsmen and increasing competitiveness in business, but the president of the Croatian Chamber of Trades and Crafts (HOK) Dragutin Ranogajec the aim was to protect the interests of craftsmen as the smallest economic entities, specifically caterers.”The biggest blow is on caterers, whose tax reform raises the VAT rate from the current 13% to 25%, and to make the situation even worse, such a change was selectively proposed only for a part of the hospitality industry and puts the smallest caterers in an unequal position.” Thus, large hotels and similar catering facilities that provide accommodation services are favored, because they remain under the application rate of 13%, not only for accommodation, but also for food-related catering services (bed and breakfast, half board and board), while restaurants and other catering establishments with the activity of serving inns and drinks come under the application of a VAT rate of 25%, just because they do not offer a bed. ” Ranogajec points out and adds that the question arises as to the basis for distinguishing the tax status of the same type of service, ie the preparation and serving of food by different craftsmen and entrepreneurs in the same catering industry.The Constitution of the Republic of Croatia stipulates that the state has the task of encouraging economic progress and social welfare and taking care of the economic development of all regions, which through the proposed distinction of caterers becomes questionable. At the same time, this division of one category to the detriment of another directly tramples on the EU recommendation “Think small first” – that small entrepreneurs must be in the first place, argue from HOK and wonder if it is not contrary to the Constitution of the Republic of Croatia? “However, an even bigger and more important issue is the constitutionality of such a provision on different VAT rates, given that the Constitution of the Republic of Croatia guarantees that the state provides all entrepreneurs with an equal legal position in the market, in the case of caterers providing the same service. taxed is certainly not the case. Therefore, the Croatian Chamber of Trades and Crafts will continue to propose changes and improvements in tax reform, through direct communication with the Ministry of Finance and through the legislative process. It will advocate for the interests of its members and create such a reform that would really relieve the economy, including crafts, as a segment of the smallest entrepreneurs and facilitate their business and development. ” Ranogajec concludeslast_img

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