- Approval of New Fiscalization Law: Croatia’s new Fiscalization Law, effective from June 13, 2025, marks the launch of the “Fiscalization 2.0” project, which introduces mandatory electronic invoicing and Continuous Transaction Controls (CTC) for real-time e-reporting across B2B, B2G, and B2C transactions.
- Key Features of the Legislation: The law establishes a decentralized e-invoicing model requiring the issuance and exchange of e-invoices through certified intermediaries, compliance with the European Standard EN 16931, and the creation of a Metadata Services Directory for taxpayer identification. Both issuers and recipients are mandated to report invoice data to streamline VAT reporting obligations.
- Implementation Timeline: Testing environments for e-invoicing will be available from September 1, 2025, with mandatory e-invoicing and e-reporting commencing on January 1, 2026, for VAT-registered businesses and extending to non-VAT registered entities and public organizations by January 1, 2027.
Source Sovos
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Croatia Enacts Fiscalization Law to Regulate Electronic Invoices and Enhance Tax Compliance
- Promulgation and Purpose: The Croatian Parliament adopted the Fiscalization Act on June 6, 2025, which regulates the fiscalization of invoices and the issuance of electronic invoices (eInvoices) to enhance tax compliance and transparency in final consumption.
- Key Provisions: The Act outlines definitions, obligations for fiscalization, and procedures for issuing, receiving, and managing eInvoices. It introduces a framework for the use of digital certificates and an application for fiscalization (FiskApplication) and establishes the Central System of the Tax Administration for processing fiscalization data.
- Implementation Timeline: The Act will come into effect on September 1, 2025, with specific provisions rolling out in stages, including full implementation by January 1, 2027. It also includes exemptions from fiscalization for certain activities and mandates compliance testing for information intermediaries facilitating eInvoice transactions.
Source Official Gazette
See also
E-Invoicing in Croatia – A Briefing document – VATupdate
Other sources
Croatia’s countrywide e-invoicing and reporting mandate is approved
- Mandatory Reporting for B2B and B2G Transactions: The newly approved law mandates that both B2B and B2G transactions, regardless of whether the taxpayer is the issuer or recipient, must be reported to the Croatian fiscalization system using a decentralized CTC exchange model, with e-invoices being the only accepted format for these transactions.
- Expansion of B2C Transaction Reporting: In addition to existing requirements for reporting cash and card payments, the new law will also encompass online payment methods (such as bank transfers and digital wallets) for B2C transactions, which will now fall under the same mandatory reporting framework.
- Implementation Timeline: Key dates include September 1, 2025, for testing the e-invoicing environment for B2B and B2G transactions, and January 1, 2026, when all B2C transactions will require reporting to the fiscalization system. By this date, all VAT taxpayers must issue e-invoices for B2B and B2G transactions, while by January 1, 2027, businesses not registered for VAT must issue and report only e-invoices.
Source Orbitax
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
