FISCAL SOLUTIONS...
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Public Croatia Author: Kristina Dosen
Croatia is planning to introduce a new system of electronic invoicing and continuous transaction control (CTC) by the end of 2024 as part of its Fiscalization 2.0 project. The project aims to improve tax compliance, prevent VAT fraud, and simplify tax administration. The Croatian Ministry of Finance and the Croatian Tax Administration have been researching the best practices and experiences of other EU countries that are planning to implement CTC systems, such as Spain, France, Italy, and Hungary. These systems involve the real-time reporting of invoice data to the tax authority, either before or after the invoice issuance, and the use of electronic invoices as the only valid proof of transactions.
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Fiscal subject related

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Content accuracy validation date: 06.09.2023
Content accuracy validation time: 08:24h

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Based on their analysis of different EU e-invoicing systems, the Croatian authorities have decided to adopt a decentralized e-invoicing model and a real-time reporting system of invoice data to the fiscalization system. The fiscalization system is an existing system that covers cash transactions.

The main features of the proposed CTC system are:

  • The introduction of a system for reporting non-cash transactions to the tax authority However, the scope of the obligation—whether it covers the whole sector for B2B, B2G, and B2C or not—is still unclear.
  • The potential introduction of a B2B e-invoicing mandate, combined with e-archiving and e-bookkeeping requirements
  • The introduction of a free e-invoicing platform for small taxpayers
  • The simplification of reporting obligations by reducing the number of forms the tax authority requires and pre-filling tax returns

The project is expected to be completed by the end of 2024, giving enough time for the necessary legal and technical adjustments to be made. The tax administration is currently forming working groups and conducting surveys to find the optimal solutions for the new CTC system.

 

 

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