Fiscal subject related
On January 24, 2025, Croatia's Deputy Prime Minister announced the upcoming launch of the Fiskalizacija 2.0 project, set for 2026, which will mandate electronic invoicing (e-invoicing) between businesses (B2B). Draft legislation will soon be available for public consultation, and there may also be initiatives to implement fiscalization for business-to-consumer (B2C) transactions.
This new system will require live reporting to the government’s e-Račun platform. To facilitate this process, a free application called “FiskAplikacija” will be developed for companies, craftsmen, and freelancers. This app will allow users to review fiscalized data and potentially offer complete VAT assessments, including pre-filled VAT returns.
In September 2023, Croatia's government sought permission to deviate from the EU VAT Directive, which currently restricts mandatory e-invoicing. Approval for this request typically takes between three to six months. The Ministry of Finance aims to launch the e-invoicing system for domestic transactions by January 1, 2026.
Croatia had previously introduced mandatory e-invoicing for business-to-government (B2G) transactions in 2019.
The Fiskalizacija 2.0 project will also consider third-party e-invoicing partners and include several components:
- Establishing a system for the fiscalization of invoices in B2B transactions,
- Implementing a cashless payment system through e-invoices,
- Creating an integrated electronic archive,
- Developing advanced online bookkeeping within the VAT system to provide various benefits to stakeholders,
- Simplifying tax returns and reducing the number of required forms for tax bookkeeping,
- Ensuring accuracy in tax obligations through data from the e-Račun platform,
- Promoting transparency in business practices, including insights into payment terms and compliance,
- Enabling current credit checks,
- Contributing to environmental sustainability by using digital rather than paper archives.
Additionally, as part of its VAT in the Digital Age reforms, the EU has mandated structured e-invoicing for cross-border intra-community supplies starting July 2023. This reform aims to eliminate pre-clearance e-invoicing requirements similar to those implemented in Italy.
Overall, the Fiskalizacija 2.0 project represents a significant step towards modernizing Croatia's invoicing system, reducing fraud, and easing compliance burdens for businesses.
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