Croatia Approves Nationwide E-Invoicing and Reporting Mandate
The Croatian government has officially approved the new “Law of Fiscalization,” establishing a comprehensive e-invoicing and reporting obligation across all transaction types, including B2B, B2G, and B2C. This marks a significant expansion of Croatia’s fiscal oversight framework and introduces new technical and operational requirements for taxpayers.
B2B and B2G Transactions Enter the Fiscalization Scope
Under the new law, both B2B and B2G transactions must be reported to Croatia’s fiscalization system using a decentralized CTC exchange model. This applies to all VAT taxpayers, whether acting as the invoice issuer or recipient.
While e-invoicing has already been in place for B2G transactions, taxpayers will now also be required to report these transactions to the fiscal system. Additionally, e-invoices will become the only format permitted for B2B and B2G transactions.
Taxpayers issuing e-invoices must also submit related payment data through a dedicated platform known as e-Reporting, which will also enable invoice recipients to reject received e-invoices.
Expanded Reporting Requirements for B2C Transactions
Since 2013, businesses in Croatia have been required to report B2C transactions involving cash, credit cards, or checks. The updated legislation broadens this obligation to cover all online payments—such as bank transfers, Google Pay, and PayPal—placing them under the same pre-clearance model used for existing fiscal reporting.
Implementation Timeline
- September 1, 2025: Testing of the e-invoicing environment for B2B and B2G transactions becomes available.
- January 1, 2026:
- All B2C transactions, regardless of payment method, must be reported to the fiscalization system.
- All VAT-registered taxpayers must issue and receive e-invoices for B2B and B2G transactions and report them accordingly.
- Non-VAT registered entities—including income and profit taxpayers, as well as both budgetary and non-budgetary institutions—must be able to receive and report e-invoices.
- January 1, 2027: Non-VAT registered entities will be required to issue e-invoices and report them to the fiscalization system.
There’s more you should know about e-invoicing in Croatia – learn more about the new and upcoming regulations.
