- Croatia proposes mandatory electronic invoicing for companies starting in 2026.
- Companies within the value-added-tax system must issue electronic invoices from January 1, 2026.
- Taxpayers outside the system, local and regional governments, and state-funded entities have until 2027 to issue electronic invoices.
- Both issuers and recipients must report tax data to the tax administration for processing and verification.
Source: news.bloomberglaw.com
- Expansion of Fiscalization Scope: The proposed law broadens the existing fiscalization framework by mandating the fiscalization of all invoices related to final consumption (B2C), as well as the issuance and fiscalization of electronic invoices (eInvoices) in business transactions between taxpayers (B2B) and between taxpayers and public bodies (B2G). This transition aims to enhance transparency and efficiency in tax monitoring.
- Implementation of eInvoices: A significant feature of the proposal is the introduction of mandatory eInvoices starting January 1, 2026, for taxpayers in the VAT system, with a complete transition from paper invoices to eInvoices by January 1, 2027. The law outlines the procedures for issuing, receiving, and fiscalizing eInvoices, enhancing real-time data reporting to the Tax Administration to combat VAT fraud and streamline tax compliance.
- Administrative Benefits and Cost Savings: The law is expected to reduce administrative burdens significantly by eliminating various tax returns and paperwork associated with traditional invoicing, leading to estimated savings of over EUR 120 million for businesses. Additionally, the law promotes the use of a free application for small taxpayers to facilitate the transition to digital invoicing, encouraging a more efficient and environmentally friendly approach to business operations.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
