Croatia to abolish VAT on solar panels

The Croatian government is preparing a new package of measures to tackle the high inflation and rising energy prices. One of the moves will be to abolish the value-added tax on solar panels.

Announcing the new measures to mitigate the impact of the energy crisis, Croatian Prime Minister Andrej Plenković recalled that the government’s spring package helped prevent a significant rise in energy prices for citizens.

Plenković said that the 25% VAT rate on solar energy will be slashed to zero in order to facilitate the long-term energy transition and ensure the supply of electricity.

Portal građanske energije, which supports and educates prosumers, has made a calculation of how the move will affect their investments in solar power plants.

Measures are being prepared to mitigate the impact of high natural gas prices on consumers

The government is aware of the difficulties faced by firms owned by local authorities and entrepreneurs due to the increase in energy prices. Their contracts with gas suppliers are different, but the government has ideas how to solve the problem in the long term and sustainably, and will present them in a few weeks, the prime minister added.

Plenković said that the Okoli gas storage facility is being filled according to the planned timeline, and is currently 68% full. By the beginning of September, the percentage will be over 90%, according to him.

Of note, annual inflation in Croatia in July was 12.3%.