Croatia has requested authorization from the EU for a derogation from the VAT Directive in order to mandate B2B electronic invoicing for resident taxpayers in Croatia.

Timeline

The planned go-live date for the e-invoicing requirement, which will also include e-reporting obligations, is January 2026.

Impact

The announcement released on September 8, 2023, highlights the Croatian government's commitment to modernizing its tax compliance systems and preventing certain forms of tax evasion or avoidance as part of the Fiscalization 2.0 project.

The e-invoicing requirement will cover domestic B2B transactions between resident taxpayers. It will be possible to issue paper invoices for cross-border transactions.

Once implemented, the e-invoicing requirement is expected to have significant implications for resident taxpayers in Croatia, as they will need to adapt their existing invoicing and reporting processes to comply with the new requirements.