At its session held on 17 February 2012, the Croatian Parliament passed the Act on Amendments to the Value Added Tax (VAT) Act. Even without being labelled as “a mater of urgency”, the underlying legislative procedure (starting with the announcement of the Amendments late in 2011, and ending with the completion of the Government and parliamentary procedures and entry into force of the Act on 1 March) was quick enough to be considered as urgent. The tax reform package also included amendments to the personal income tax and corporate income tax acts, as well as to the mandatory contributions act. The consequences of the tax legislation changes will be borne by all of us – from the public and economy sectors to citizens. Given the substantiality of the changes adopted at such short notice and amidst the crisis, it is worth examining whether all effects of the changes have been properly analysed and considered. The adoption of the 2012 State Budget, budget revenue shortfall and the increase in expenditure over the period 2008-10, fiscal imbalance, as well as the deficit and public debt growth – are reasons enough to introduce the necessary fiscal measures aimed at consolidating the overall government finance. This article deals with changes envisaged in the area of value added taxation.