As the landscape of digital invoicing evolves, many countries are implementing stringent requirements for electronic invoices (e-invoices) to streamline tax collection and enhance compliance. Croatia is one such country that mandates additional information fields for e-invoices beyond the minimum standards set by the EU VAT Directive, specifically Article 226. This article explores the mandatory fields for e-invoices in Croatia, focusing on compliance with the EU standard and the implications of the Classification of Products by Activity (CPA) code.
Mandatory E-Invoice Fields in Croatia
To ensure that e-invoices are valid and compliant in Croatia, they must include several key elements and adhere to specific national standards. Below are the essential components:
- Compliance with EU Standard:
- Each e-invoice must comply with the EU standard 16931-1:2017, which defines the basic structure and requirements for e-invoicing across EU member states.
- Additionally, Croatian Technical Specifications and extensions, approved by the European Committee for Standardization (CEN), must be followed.
- Fiscalization Requirements:
- E-invoices must undergo a fiscalization process, which involves submitting specific data to the Fiscalization System for tax purposes. The required data includes:
- Date of Issue: The date the invoice is generated.
- Invoice Number: A unique identifier for the invoice.
- Due Date: The payment deadline for the invoice.
- Issuer Information: Details about the company or individual issuing the invoice.
- Recipient Information: Details about the customer receiving the invoice.
- Description of Goods/Services: The quantity and type of goods supplied or services rendered, including their classification (except for advance invoices).
- Tax Base and VAT Details: The tax base for each applicable tax rate or exemption, unit price excluding VAT, any discounts or rebates, VAT rate, and the total VAT amount due.
- Reference to Previous Invoices: Necessary for correction or advance invoices.
- Bank Account Information: The bank account number or virtual account number for payment identification.
- Important VAT Notes: Any additional notes relevant to VAT calculation must be included in the XML schema according to the EU standard.
- E-invoices must undergo a fiscalization process, which involves submitting specific data to the Fiscalization System for tax purposes. The required data includes:
- Invoice Numbering and Operator Designation:
- E-invoices must adhere to specific numbering rules, which include a numerical invoice number, a designation of the business premises, and the invoicing device number.
- The numerical sequence must be uninterrupted, starting from number 1 each calendar year or tax period, per business premises or invoicing device.
- The operator’s designation, linking to the Personal Identification Number (OIB) of the issuer, must be included for audit purposes.
- CPA Code Classification:
- E-invoice issuers must classify goods and services using the correct statistical classification code from the Classification of Products by Activity (CPA), maintained by the Croatian Bureau of Statistics.
- This requires stating at least six digits of the CPA code on the e-invoice, which is a one-time obligation prior to the commencement of mandatory e-invoicing, with updates only needed for new products or changes in classification.
- The Croatian Bureau of Statistics (DZS) provides the official CPA classification list.
- Available at: https://www.dzs.hr
Conclusion
Croatia’s requirements for e-invoices reflect a commitment to enhancing tax compliance and streamlining administrative processes. By mandating information fields that exceed those outlined in the EU VAT Directive, Croatia aims to address specific domestic challenges in tax administration and reporting. Businesses operating in Croatia must ensure they meet these requirements to avoid penalties and ensure smooth operations. Understanding these specific fields, including compliance with CPA codes, is crucial for both domestic and international businesses navigating the Croatian market.
Source VATupdate.com
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
