On June 11, 2025, Croatia officially approved and published the Fiscalization Act, which lays the groundwork for mandatory domestic e-invoicing and e-reporting for B2B transactions among resident, VAT-registered businesses.
While the specifics regarding the applicability to non-residents with a VAT-fixed establishment remain unclear, the introduction of e-reporting is anticipated to facilitate pre-filled VAT returns.
Key Timetable for Croatia's E-Invoicing Launch
- March 2025: Public consultation period.
- June 2025: Official approval of the law.
- Autumn 2025: Testing phase for e-invoice and e-reporting submissions to the government’s e-Račun platform.
- January 2026: Mandatory implementation of e-invoicing for both B2G and B2B transactions between resident VAT registered businesses alongside e-reporting submissions for invoices not subject to the e-invoicing mandate. Additionally, non-VAT registered businesses must be equipped to accept e-invoices.
- January 2027: Extension of the mandate to small, VAT-exempt businesses, allowing them to issue e-invoices.
The initiative will be supported by a government directory, known as “AMS,” which will list taxpayers and approved e-invoicing service providers, along with a reporting portal named “FiskApplication.” The Croatian government will also provide a free e-invoicing application called “MICROeINVOICE.” E-invoicing in Croatia will adhere to the EN16931 standard with localized extensions. By December 31, 2025, eInvoice recipients must submit and confirm their address to find the final address for receiving eInvoices via the Address Book of Metadata Services (AMS).
Under the e-reporting framework, mandated transactions will require additional disclosures beyond existing invoice requirements, including:
- Payment terms
- Product codes (as per the Croatian Bureau of Statistics standards)
- Bank IBAN payment details
Moreover, buyers will be responsible for reporting details of any rejected sales invoices.
This initiative is part of a broader digitalization reform effort known as Fiskalizacija 2.0. The Ministry is currently soliciting feedback regarding the potential withdrawal of existing reporting requirements, such as the Outgoing Invoices Report (I-RA) and the Incoming Invoice Report (U-RA).
A user-friendly application system, “FiskAplikacija,” will be developed for companies, craftsmen, and freelancers, enabling them to review fiscalized data. This will enhance VAT assessments, potentially including pre-filled VAT returns.
It's important to note that B2G mandatory e-invoicing has already been implemented in Croatia since 2019.
Options for Authorized E-Invoicing Agents
Third-party e-invoicing partners will also be considered in the design of the new framework. Key components will include:
- A system for the fiscalization of invoices issued in the economy (B2B)
- The implementation of a cashless payment system via e-invoice
- An integrated e-archive
- Unique and advanced online bookkeeping in the VAT system to ensure a range of benefits for stakeholders
- Simplified tax returns and a reduction in the number of required forms for tax bookkeeping
- Enhanced accuracy of tax obligations through data from the e-Račun platform
- Improved transparency in business practices, particularly in terms of payment terms compliance
- Current credit checks
- Contributions to environmental protection by replacing paper-based accounting with digital archives.
In summary, Croatia's Fiscalization Act represents a significant advancement in modernizing its tax reporting system, paving the way for efficient and compliant business operations in the digital age.
How Can KGT Support You?
KGT has created an SAP-integrated SAF-T add-on solution for Croatia, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic e-invoicing files in the legal format and controls before submission. When SAP DRC launched the Croatian e-invoicing solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for Croatian services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.
KGT is an SAP partner for PE services and an SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409
