The Croatian tax authority said on Monday that as of 1 July, Croatian 25-percent Value Added Tax (VAT) would be charged on all postal shipments from non EU-suppliers such as China, United States, or United Kingdom.

Before the new regulation, small consignments sent in small packages or letters valued up to 160 kuna (€21) were VAT-free for EU receivers.

Tax authority said that this decision is in line with new EU regulation, which says that all EU countries must start charging VAT on all incoming postal shipments as of 1 July 2021.