- Government proposes mandatory e-invoicing
- Bill sent for public consultation
- Overview of Fiscalization Changes: The Draft Law on Fiscalization aims to expand the current fiscalization framework in Croatia by introducing mandatory electronic invoicing (e-invoicing) for all businesses starting January 1, 2026. The law emphasizes the need for compliance with VAT regulations and aims to streamline invoicing processes across different transaction types, including business-to-customer (B2C), business-to-business (B2B), and business-to-government (B2G).
- Implementation Timeline and Structure: The law is set to take effect in phases, with preparatory measures starting on September 1, 2025. It outlines specific requirements for the issuance and fiscalization of e-invoices, including the use of a unique invoice identifier and standardized data reporting through established electronic connections. The law also mandates that all taxpayers, including small taxpayers, must adapt to using e-invoicing and provides provisions for a free application (MIKROeRAČUN) to assist them.
- Administrative Benefits and Compliance: The introduction of e-invoicing aims to reduce administrative burdens on businesses by eliminating the need for numerous tax returns and providing real-time data reporting to the Tax Administration. This move is expected to enhance tax compliance and reduce VAT fraud by ensuring that all transactions are properly recorded and reported. The law also emphasizes cybersecurity measures for data protection during the invoicing process, ensuring that both the Tax Administration and businesses can rely on secure and accurate data exchange.
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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.
