Croatia: Final Amendments to the VAT Act Adopted on 5 December 2025

On 5 December 2025, the Croatian Parliament adopted the final proposal of amendments to the Value Added Tax (VAT) Act, marking a significant step toward modernizing VAT compliance and aligning with the upcoming mandatory e-invoicing regime effective 1 January 2026. These changes aim to simplify reporting obligations, reduce administrative burdens, and prepare businesses for digital transformation in tax processes.

Key Changes Introduced

• Mandatory E-Invoicing for Domestic B2B Transactions
  • From 1 January 2026, e-invoicing becomes compulsory for all domestic B2B transactions.
  • The previous requirement for customer consent to receive e-invoices has been removed to ensure full adoption.
• Simplified VAT Reporting
  • Elimination of the U-RA form (list of incoming invoices) and the PPO form (specification of outgoing supplies under domestic reverse charge).
  • Extended filing deadlines: VAT returns, EU recapitulative statements, and importation reports will now be due by the last day of the month following the tax period (previously the 20th day).
• Other Adjustments
  • No invoice required for currency exchange services performed in Croatia.
  • VAT reporting for December 2025 remains under current rules; new deadlines apply from January 2026 onward.

Legislative Source

The final proposal of the amendments to the VAT Act, accepted by Parliament on 5 December 2025, is available here (in Croatian only).