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ECJ Proposal: Extending Croatia’s Input VAT Deduction Limit for Car Expenses Until 2027

  • European Commission proposes Council Decision on Croatia’s input VAT deduction for car expenses
  • Proposed decision involves extending Croatia’s derogation from specific provisions of the VAT Directive
  • Extension would allow Croatia to continue limiting input VAT deductions on passenger cars until December 31, 2027
  • Future extension requests must be submitted to the European Commission by March 31, 2027
  • Proposal reflects European Commission’s response to Croatia’s request regarding VAT deduction restrictions

Source: globalvatcompliance.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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