The Graduate paper explains the value added tax, which is the most important tax form of the Republic of Croatia. The Republic of Croatia today has the highest VAT rate in the European Union. Today value added tax is the most profitable tax revenue, and VAT rates are generally used as a basic element in describing value added tax. Value added taxi s a public income taxation on the delivery of goods and services that affects all sections of the population. Whit the accession of the Republic of Croatia to the European Union, it is necessary to harmonize the legislation of the Republic of Croatia whit the acquis communautaire, as there are basic rules that all Member States must abide by. Basic objectives have been set for the functioning of the internal market, the free movement of goods, services and capital, which all Member States must abide by. It is essential for the European Union to become competitive, oriented towards the world's economy and better standards of living. The uniformity of the tax system within the market is bast reflected in value added tax. This paper investigated and explains value added taxi n Republic of Croatia after it's accession to the European Union and value added tax rate sin the European Union members states such as: Germany, Hungary and Ireland.