E-Invoicing in Croatia: Everything You Need to Know

• 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

Click on the logo to visit the website

• Mandatory E-Invoicing from 2026:
  Starting 1 January 2026, Croatia requires VAT-registered businesses to issue and report e-invoices for B2B and B2G transactions, with non-VAT entities following from January 2027.
• Real-Time Reporting and Compliance:
  Businesses must transmit invoice data in real time to the Tax Authority under Croatia’s new Continuous Transaction Controls (CTC) model, enhancing VAT compliance, invoice tracking, and fraud prevention.
• National Platform and Tools:
  Croatia’s decentralized e-invoicing model supports Peppol and FiskApplication, with optional use of certified providers. A free invoicing tool, MIKROeRAČUN, will support small non-VAT businesses with e-invoice creation and storage.
• E-Reporting and Invoice Details:
  Both issuers and recipients must report invoice data, including payment status, bank details, and product codes. Recipients must report rejected invoices, while issuers must declare failed or non-electronic invoice submissions.