Croatia E-invoicing

Croatia is implementing a comprehensive e-invoicing and fiscal reporting system under the Fiscalization 2.0 framework.

This system combines mandatory real-time reporting with e-invoicing for B2B and B2G transactions, aiming to prepare for and align with the requirements of ViDA. This integrated approach requires businesses to exchange electronic invoices and report fiscal data in real time to the Croatian Tax Administration.

This page provides an ideal overview of Croatia e-invoicing, covering the latest regulatory changes and compliance requirements.

1. B2B e-invoicing in Croatia 2. CTC e-reporting requirements in Croatia

Type of CTC system

3. B2G e-invoicing in Croatia 4. Timeline of e-invoicing adoption in Croatia 5. Setting up e-invoicing in Croatia with Sovos 6. FAQ 7. Additional Resources

B2B e-invoicing in Croatia

Croatia’s e-invoicing mandate operates under the Fiscalization Law (Zakon o fiskalizaciji NN 89/25), which was published in June 2025 and entered into force on 1 September 2025.

This law establishes the “Fiscalization 2.0” framework, which introduces a decentralised mandatory e-invoicing model for domestic B2B and B2G transactions—alongside a continuous transaction control (CTC) real-time reporting system for B2B, B2G and B2C transactions.

Under Croatia’s Fiscalization 2.0 system, VAT-registered businesses must begin mandatory e-invoicing and CTC reporting from 1 January 2026.

Non-VAT registered businesses (small companies, freelancers, certain public bodies) that issue invoices must begin e-invoicing and CTC reporting from 1 January 2027.

CTC e-reporting in Croatia

Croatia implements a dual electronic reporting system:

CTC e-reporting (Fiscalization) requires real-time reporting of fiscally relevant data from outbound invoices and a 5-day reporting window for inbound invoices.

E-reporting of additional events (eReporting, Article 50 of Fiscalization Law) is an additional periodic or real-time reporting of invoice payment information, invoice rejections by the recipients, and transactions where invoices could not be issued because the buyer didn’t register its e-invoice address in the Central DNS-based directory (AMS).

Croatia’s CTC system

Croatia uses a decentralised e-invoice exchange model with CTC e-reporting.

Invoices must be issued electronically in a format that complies with the European Norm. They must be exchanged through Access Points or any other means agreed upon between the parties, e.g. compliant EDI, Peppol, provided they ensure authenticity of origin, content integrity, and readability from issuance until the end of the e-invoice retention period.

CTC reporting and e-invoicing may be outsourced to third-party service providers, referred to as “information intermediaries,” who are listed on the tax administration website.

B2G e-invoicing in Croatia

Since the end of 2018, public sector entities have been required to accept and process e-invoices from suppliers in public procurement. E-invoicing as a whole, i.e. also in the B2G flow, became mandatory in this sector on 1 July 2019.

B2G e-invoicing continues to operate under the existing Law on Electronic Invoicing in Public Procurement (NN 94/18), with FINA’s eRacun remaining the mandatory central platform for public sector transactions.

However, under Croatia’s Fiscalization 2.0 system, B2G transactions now have an additional compliance layer and are now subject to the e-invoice fiscalization process in the form of CTC e-reporting alongside the existing public procurement e-invoicing requirements.

Timeline of e-invoicing adoption in Croatia

Here are the key dates in Croatia’s journey towards mandating electronic invoicing.

1 December 2018: All contracting parties must accept and process e-invoices in public procurement
1 July 2019: E-invoicing becomes mandatory in public procurement
13 June 2025: Croatia approves Fiscalization law (NN 89/25), expanding the legal framework to include mandatory e-invoicing and CTC e-reporting
3 July 2025: Production system available for voluntary testing
1 September 2025: “Fiscalization 2.0” system becomes applicable; start of mandatory testing for technically ready entities
1 January 2026: Mandatory e-invoicing (issuance and receipt) and e-reporting begin for VAT-registered businesses, as part of “Fiscalization 2.0”; mandatory e-invoicing (receipt) begins for non-VAT-registered businesses
1 January 2027: Mandatory e-invoicing (issuance) and e-reporting begin for non-VAT-registered companies, as part of “Fiscalization 2.0”
1 July 2030: Croatian VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions

Setting up e-invoicing in Croatia with Sovos

Tax and e-invoicing compliance can be particularly time-consuming and complicated when you operate in numerous countries, considering that rules and regulations change often. Having a single partner for compliance wherever you do business saves you time and provides peace of mind.

Sovos can be that partner for you. Get in touch to find out more.

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FAQ

Is e-invoicing mandatory in Croatia?

E-invoicing with CTC reporting becomes mandatory for VAT-registered businesses and non-VAT-registered businesses that receive e-invoices on 1 January 2026, and for non-VAT-registered businesses that issue e-invoices from 1 January 2027 under the Fiscalization 2.0 framework.

What is "Fiscalization 2.0" in Croatia?

Fiscalization 2.0 is Croatia’s comprehensive digital tax system, combining mandatory e-invoicing with Continuous Transaction Controls (CTC). It requires real-time reporting of fiscal data from both issued and received invoices, plus additional e-reporting of events like payments and rejections. The system aims to digitise tax compliance, increase transparency, and reduce administrative burdens.

How does Croatia's system compare to other EU e-invoicing mandates?

Croatia implements a combined CTC e-reporting and decentralised e-invoicing system requiring real-time fiscal reporting to tax authorities and exchange of e-invoices via certified service providers. This corner-5 model is similar to other countries that have implemented or are in the process of implementing this CTC model, such as France, Greece and Slovakia and aims to align with ViDA.

Is Croatia using Peppol?

Croatia’s system uses components with similar functions to Peppol (Access Points, metadata services, AS4 protocol), however, it operates under its own certification processes and requirements. The Peppol network may be used as an alternative method of exchanging e-invoices, provided that it ensures the integrity and authenticity of the e-invoice.

How does Croatia align with ViDA?

The Croatian mandate through its Fiscalization 2.0 system directly implements ViDA’s central concept of digital real-time reporting based on e-invoicing. Starting with a national application of a real-time transaction-based e-reporting system, the country is building infrastructure that sets the foundation for the transition to a new reporting system for intra-EU trade in the digital age.