Regulatory updates - Croatia

A legislative package is being prepared and will soon be opened for public consultation. As previously announced, the new tax measures are expected to enter into force in 2026.

The Fiscalization 2.0 package aims to digitalize the tax system by, among others, introducing mandatory electronic invoicing and implementing certain financial reporting tools. Additionally, the Ministry of Finance plans to launch FiskAplikacija, a free application allowing taxpayers to access and review fiscalized data.

As previously reported by Pagero, the Croatian Tax Administration launched the project “Fiscalization 2.0”, which aims to introduce a new system for e-invoicing, e-archiving, and advanced online bookkeeping.

The Ministry of Finance of Croatia has formally reached out to the European Commission to obtain a derogation from Articles 218 and 232 of the 2006 VAT Directive. This would give Croatia the right to introduce countrywide mandatory B2B e-invoicing (“eAccount”) and digital reporting for domestic transactions.

The introduction of the mandatory B2B e-invoicing is planned from 1 January 2026.

Pagero follows the developments closely and will inform our customers once the decision on derogation from the EU Council is announced.

As previously reported by Pagero, the Croatian Tax Administration launched the project “Fiscalization 2.0”, which aims to introduce a new system for e-invoicing, e-archiving, and advanced online bookkeeping.

The Tax Authority is planning to introduce a countrywide CTC obligation, possibly, in two steps:

• Phase 1, a country-wide e-invoicing mandate,and
• Phase 2, a country-wide DRR mandate.

While much of the details still remain unknown, the businesses are expected to be reporting data on both sales and purchase invoices to a central infrastructure within 48 hours after issuance, respectively reception of the document. Which is largely in line with the ViDA proposal.

The current platform for B2G e-invoicing is likely to be merged or associated in conjunction with the anticipated mandate.

Peppol Network, which is already enabled for B2G e-invoicing, is expected to be a likely acceptable alternative distribution channel as well for B2B e-invoices, when the mentioned mandate comes into force.

It has already been raised, that the current EN 16931 specifications do not fulfil the local VAT requirements in Croatia sufficiently, and thus either a revised EN should come into place or an Extension provided for taxpayers doing business in Croatia.