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

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Croatia Confirms Mandatory B2B and B2C E-Invoicing starting January 2026: Fiscalization 2.0 Project

• Mandatory E-Invoicing and Digital Reporting: Beginning January 1, 2026, Croatia will implement mandatory electronic invoicing and digital bookkeeping for all VAT-registered businesses, including both B2B and B2C transactions. This initiative is part of the broader Fiscal Project 2.0, which aims to modernize the tax system and enhance compliance.
• Implementation Timeline and Testing Phase: The updated Tax Authority system will be available for testing starting September 1, 2025, allowing businesses and technology providers to familiarize themselves with functionalities such as e-invoice exchange and fiscal signing. The mandate will expand to include budgetary entities not registered for VAT by January 1, 2027.
• Objectives and Benefits of the Fiscal Project 2.0: The project aims to establish a framework for mandatory B2B e-invoicing, enhance digital account auditing, and create an advanced electronic accounting system. Expected benefits include simplified tax declarations, improved accuracy in tax obligations, enhanced transparency, reduced paperwork, and better interoperability among businesses, contributing to a more efficient and competitive economic environment.

Source Edicom

• 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.