Croatia Expands Fiscalization Scope and Mandates E-Invoicing
On February 27, 2025, Croatia published a draft law proposing the expansion of fiscalization. Currently, fiscalization in Croatia applies mainly to cash transactions, requiring businesses to report and validate transactional data with the Tax Administration in real-time, typically for B2C sales. Now, the scope is widening to cover all payment types, including non-cash transactions, and extend to industries that were previously exempt.
As part of the fiscalization expansion, the law also introduces mandatory B2B e-invoicing and digital reporting, ensuring that all invoices are processed electronically and reported to tax authorities in real time. These changes aim to enhance tax compliance, improve financial transparency, and accelerate the country’s transition toward a fully digital invoicing ecosystem.
Mandatory E-Invoicing Timeline
- September 1, 2025 – December 31, 2025: Voluntary testing phase for e-invoicing and real-time reporting.
- January 1, 2026: Mandatory e-invoicing for VAT-registered businesses; all other entities must be capable of receiving e-invoices.
- January 1, 2027: Full adoption—mandatory e-invoicing for all businesses
Key Changes for Businesses
The introduction of mandatory e-invoicing and e-reporting will require businesses to submit invoices electronically to the Tax Administration upon issuance and receipt. This digital transition aims to improve tax compliance and streamline reporting obligations, ensuring that invoice data is captured in real-time.
From 2027, structured e-invoices will completely replace paper invoices, necessitating businesses to upgrade their invoicing systems and ensure compliance.
The draft legislation is currently open for public consultation, and businesses are encouraged to participate by providing feedback and preparing for the transition.
