The Croatian government is reportedly considering an extension of the 13% reduced VAT rate to the food service industry (hotels, restaurants, cafés), which is currently subject to the standard rate (hotel accommodation is subject to 13% rate). If approved, the reduced 13% rate is expected to apply from 1 January 2020. If not approved, the rate will be reduced to 24% as the standard rate is already scheduled to be reduced to 24% from 1 January 2020.