This specialist graduate thesis "Value-Added Tax and Its Impact on Public Revenue in the Republic of Croatia" analyzes the role and significance of value-added tax (hereinafter: VAT) as a key source of revenue for the state treasury. Through detailed analysis, the thesis also demonstrates how VAT, as an indirect tax, has become the dominant form of taxation in the Republic of Croatia, significantly contributing to overall public revenue. The thesis includes an analysis of the historical development and legal framework of VAT in the Republic of Croatia, providing an overview of the introduction of VAT into the Croatian tax system as well as subsequent legislative changes. It examines the legal regulations and amendments that have affected the rate and structure of VAT. The structure and rates of VAT are considered, including how different VAT rates, such as the general rate, reduced rates, and the zero rate, impact various sectors of the economy. The study also investigates how these rates contribute to total public revenue. The main focus of the thesis is on the quantitative analysis of VAT's impact on state revenue. Data on the amounts of VAT collected over the years and their share in total public revenue are presented. The relationship between economic growth and the increase in VAT revenue is analyzed. In one section of the thesis, a comparison is made between the Croatian VAT system and the practices of other European Union member states, highlighting differences in rates, structures, and the efficiency of VAT collection. The thesis also identifies the main challenges faced by the Republic of Croatia concerning VAT, including tax evasion, administrative difficulties, and alignment with EU standards. Additionally, recommendations are provided to improve the efficiency of the VAT system and increase its contribution to public revenue. The conclusion emphasizes that VAT is crucial for the financial stability of the Republic of Croatia and underscores the need for continuous adjustments and improvements in tax policy to ensure optimal public revenue and stimulate economic growth.