The meeting of the representatives of the National Association of Caterers with the Minister of Finance Zdravko Marić ended.
The caterers point out that their work in the last 18 months is a nightmare due to the coronavirus pandemic, and they are asking the Government to reduce the VAT rate. And through two ways: reducing the VAT on beverages to 13 percent (beer, wine and soft drinks), or respecting labor costs as a tax deduction.
But how it transmits HRT, Minister Marić rejected both of their requests. “From the Association of Caterers came a proposal to circumvent the topic that the cost of labor erupts from the VAT base. This is simply not recognized in our tax system or in the system of the European Union of any country, nor can it be ultimately legally defined.", he pointed out Zdravko Marić, Minister of Finance.
The tourism and catering sector represents 21% of all companies in the Republic of Croatia, and the activity of preparing and serving food and beverages is the main activity of 2/3 of these companies with a total share of sectoral employment of 51,4%. Business in the sector was on the verge of profitability until the beginning of the pandemic, and the corona crisis significantly exacerbated all existing problems and brought the entire sector to the brink of collapse and the coming wave of COVID bankruptcies.
With 25% VAT and 3% (depending on the city) consumption tax, caterers in Croatia have the highest tax burden. "I can only tell caterers to cope in any way they can with new loans. We can hope to have better working conditions in the next few years. For now, we do not see that in the near future in those demands we have been looking for", She emphasized Jelena Tabak, president of the National Association of Caterers.