Croatia has approved its new Fiscalization Law, published in the Official Gazette on 13 June 2025. This legislation represents the culmination of the “Fiscalization 2.0” project, expanding the current framework to include mandatory electronic invoicing and CTC (Continuous Transaction Controls) e-reporting in its scope.
Key Aspects
The law confirms the introduction of a decentralized mandatory e-invoicing model for domestic B2B and B2G transactions, alongside a continuous transaction control (CTC) real-time reporting system for B2C, B2B, and B2G transactions. It establishes a Metadata Services Directory (AMS) for taxpayer identification, requires e-invoice issuance and exchange via certified information intermediaries, and provides a free application for small businesses not registered for VAT.
All e-invoices must comply with the European Standard EN 16931 with local extensions. Both issuers and recipients must fiscalize e-invoices by reporting the required data, with issuers reporting at the time of issuance and recipients reporting within five working days of receipt. The data reported through the system will be used to simplify existing VAT reporting obligations and replace certain returns.
Implementation Timeline
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1 September 2025: E-invoicing testing environments will be made available
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1 January 2026: Mandatory e-invoicing and e-reporting begin for VAT-registered businesses
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1 January 2027: Mandatory e-invoicing and e-reporting for non-VAT registered entities and public organizations
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