Croatia's new Fiscalisation Act, known as "Fiscalisation Project 2.0", which was approved on 11 June 2025 and will largely be effective from 1 September 2025, significantly expands digital tax compliance, mandating B2B e-invoicing and real-time e-reporting for most businesses.
Croatia is embarking on a significant transformation in its tax compliance landscape with the introduction of the new Fiscalisation Act, a pivotal piece of legislation that will reshape how businesses handle invoicing and reporting. Approved on 11 June 2025 and largely effective from 1 September 2025, this Act signals a move towards greater digitalisation. While mandatory business-to-government (B2G) e-invoicing has been in place since 2019, the new Act, dubbed "Fiscalisation Project 2.0," expands this scope dramatically, ushering in mandatory business-to-business (B2B) e-invoicing and real-time e-reporting.
To understand the significance of this change, it's helpful to look at Croatia's journey with e-invoicing. Since 2019, businesses engaging with the government have been required to use electronic invoices. This initial step laid the groundwork for the broader digitalisation now being implemented. The "Fiscalisation Project 2.0" represents an evolution, aiming to extend these efficiencies and transparency gains across all business transactions.
What's changing? The core of the new Fiscalisation Act
While Croatia has had mandatory B2G e-invoicing since 2019, this new Act dramatically expands the scope. The key objectives of this "Fiscalisation Project 2.0" are clear: to establish a framework for mandatory B2B e-invoicing, create a system for digital invoice auditing, and implement an advanced electronic accounting system.
Here’s a breakdown of the critical changes:
Mandatory B2B e-invoicing (eRačun)
From 1 January 2026, all resident, VAT-registered businesses will be obligated to issue and receive electronic invoices (eRačun) for domestic transactions. This mandate also extends to income tax/profit tax taxpayers (even if not VAT-registered) and various state and local government entities.
To ensure a smooth transition, the rollout of the mandate will be phased:
- 1 September 2025: A voluntary testing phase begins, allowing businesses to integrate and test their e-invoice and e-reporting systems with the Tax Administration's platform.
- 1 January 2026: Mandatory B2B e-invoicing commences for VAT-registered businesses. Non-VAT registered businesses must also be able to receive e-invoices.
- 1 January 2027: The obligation to issue e-invoices extends to small, VAT-exempt businesses.
These e-invoices must comply with the EU standard EN 16931, complemented by specific technical specifications issued by the Croatian Tax Administration. E-invoices will primarily be exchanged through secure "access points," ensuring standardised formats and interoperability across different systems.
E-invoices generated under this Act are considered credible legal documents. Their authenticity and integrity must be maintained for ten years from the end of the year they were issued. Businesses will also need to link their goods and services to the appropriate six-digit classification codes from the Classification of Products by Activity (Klasifikacija proizvoda po djelatnostima, or short KPD), maintained by the State Bureau of Statistics.
Real-time e-reporting (eIzvještavanje)
Alongside e-invoicing, the Act also introduces a robust e-reporting mechanism, providing the Tax Administration with near real-time insights into transactions. Both the issuer and the recipient must submit prescribed data to the Tax Administration's Fiscalisation System.
This dual reporting involves the use of digital certificates, with issuers reporting at the point of issuance (or, for self-issued invoices, within five working days) and recipients within five working days of receipt. Comprehensive data, including invoice details, item specifics with KPD classification codes, payment identifiers and more, must be submitted for automated verification. The system is designed to cross-verify data submitted by both parties, significantly reducing discrepancies and aiding in fraud detection.
It’s worth calling out at this point that e-reporting will also be required for those exceptions where an e-invoice couldn’t be issued (e.g., due to unavailable recipient identifiers in the government's address book). Finally, businesses will also need to report e-invoice rejections and collections to the Tax Administration by the 20th.
Supporting infrastructure and benefits
The Croatian Tax Administration is developing a comprehensive digital ecosystem to support this change. This includes the Government Directory (Adresni Metapodatkovni Servis, or in English Address Metadata Service, short AMS - a central address book of taxpayers and approved e-invoicing service providers), the free FiskAplikacija (short for Application for fiscalisation and e-Reporting) for reviewing fiscalised data and managing e-invoice exchange authorisations, and the MIKROeRAČUN (which loosely translates to micro-e-invoice) application for smaller, non-VAT registered businesses starting 1 January 2027. Third-party e-invoicing partners will also play a role, provided they meet cybersecurity and certification requirements.
Benefits and business readiness
The benefits of this ambitious digitalisation push are expected to be substantial, ranging from simplified tax declarations and a reduction in paper forms to enhanced transparency and fraud prevention. The shift to digital archiving also offers environmental advantages.
With the clock ticking towards the 1 January 2026 mandate for VAT-registered entities, and the voluntary testing phase starting this autumn, businesses should now assess their internal systems, plan for the voluntary testing phase, enhance security measures, and stay informed of updates from the Tax Administration.
Stay ahead of the curve
Croatia’s Fiscalisation Act represents a bold step towards a modern, digital tax environment, aligning with broader EU initiatives like the VAT in the Digital Age reforms. Businesses that proactively adapt will be well-positioned to navigate this new landscape and reap the efficiencies it promises.
Navigating the complexities of new tax legislation can be challenging. Our team of experts is on hand to provide the information and guidance you need to ensure a smooth transition to Croatia's new e-invoicing and e-reporting regime.
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Danielle has 15 years of experience in customer relationship management within invoicing and financial administration. She currently works in Geneva, supporting global customers at Unifiedpost Group and helping multinational companies digitise their processes. Over the years, she has been closely involved in the digital transformation of invoicing, including leading e-invoicing initiatives across the EMEA and Asia-Pacific regions for a major multinational. Her extensive experience means she’s always up to date on the latest e-invoicing regulations and changes around the world.
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