Review article
TAXATION OF TOURISM IN THE REPUBLIC OF CROATIA
Matea Brkljačić
; Josip Juraj Strossmayer University of Osijek, Faculty of Law Osijek
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* Corresponding author.
Abstract
This paper analyses the system of taxation of tourism in the Republic of Croatia, with particular attention paid to value added tax (VAT), income tax and corporate income tax. The tourism sector, as one of the most important economic sectors of the Republic of Croatia, represents a significant source of fiscal revenue, which is why the tax treatment of tourism activities plays a key role in shaping a sustainable and competitive tax policy. The paper examines the basic principles of taxation and presents their application through the current legislative framework, with an emphasis on the special procedure for the taxation of travel agencies, which is based on the taxation of the difference between the purchase and sale prices of tourist packages (the so-called margins). In addition, the paper also discusses the system of flat-rate income taxation for citizens who rent accommodation facilities, which further simplifies tax administration and encourages legal business. The methodological approach is based on the analysis of legal regulations, of professional literature and of practice. The aim of the paper is to determine the fiscal effects of various forms of taxation on the development of tourism in Croatia. In conclusion, the paper points to the importance of clearly defined tax rules and their compliance with European standards as a prerequisite for the sustainable growth of the tourism industry and an efficient fiscal system.
Keywords
Republic of Croatia; taxes; tourism; travel agencies
Hrčak ID:
333661
URI
Publication date:
14.7.2025.
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