Regulatory updates - Croatia

According to the draft law, issuers and recipients of e-invoices will be required to report, in real-time, invoice data (Croatia’s fiscalization procedure) to the tax administration’s system (fiscalization system).

The fiscalization system checks that all mandatory elements of the reporting have been submitted and whether they have been signed with a valid digital certificate, a practice to be performed for all transaction types (B2B, B2G, and B2C).

The draft also specifies which taxpayers are exempt from reporting data to the fiscalization system in Article 4. 

E-invoice exchange

The draft mentions that the can be performed via service providers or other technologies such as the Peppol Network, EDI, or API solutions, among many different options.

Timelines

The draft proposes the following dates:

• From September 1, 2025, taxpayers can start testing systems for e-invoice exchange and reporting;
• From January 1, 2026
  • VAT-registered businesses (B2B) must begin issuing e-invoices exclusively. Issued and received e-invoices must be reported.
  • Taxpayers issuing invoices on final consumption (B2C) must report each transaction.
• From January 1, 2027, taxpayers outside the VAT system (not registered in the VAT register), such as taxpayers under income or profit tax, as well as budgetary and extra-budgetary users, must start issuing only e-invoices and reporting them.

The public consultation will be open for public feedback until March 28, 2025.

A legislative package is being prepared and will soon be opened for public consultation. As previously announced, the new tax measures are expected to enter into force in 2026.

The Fiscalization 2.0 package aims to digitalize the tax system by, among others, introducing mandatory electronic invoicing and implementing certain financial reporting tools. Additionally, the Ministry of Finance plans to launch FiskAplikacija, a free application allowing taxpayers to access and review fiscalized data.

As previously reported by Pagero, the Croatian Tax Administration launched the project “Fiscalization 2.0”, which aims to introduce a new system for e-invoicing, e-archiving, and advanced online bookkeeping.

The Ministry of Finance of Croatia has formally reached out to the European Commission to obtain a derogation from Articles 218 and 232 of the 2006 VAT Directive. This would give Croatia the right to introduce countrywide mandatory B2B e-invoicing (“eAccount”) and digital reporting for domestic transactions.

The introduction of the mandatory B2B e-invoicing is planned from 1 January 2026.

Pagero follows the developments closely and will inform our customers once the decision on derogation from the EU Council is announced.