Croatia's Fiscalization 2.0, set to launch in 2026, will introduce mandatory eInvoices for VAT reporting, expanding fiscalization to B2B and B2G transactions. The reform aims to streamline compliance, reduce administrative burdens, and modernize tax reporting through digital tools like the "FiskApplication" for businesses and freelancers.
Fiscalization 2.0 in Croatia: Main Changes & Impacts Explained
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Croatia
Author: Ivana Picajkić
Category:
Fiscal subject related
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Content accuracy validation date:
07.02.2025
Content accuracy validation time:
08:07h
On January 24, 2025, Croatia’s finance minister announced the launch of the Fiscalization 2.0 project set for next year, bringing major updates to the VAT reporting system through the implementation of eInvoices.
Main highlights from the announcement are as follows:
1. Introduction of Fiscalization 2.0.
Croatia’s Finance Minister confirmed that the new tax package is in its final stages, with legislative amendments in progress. The draft will soon be open for public consultation, and implementation is expected next year.
2. eInvoices for VAT Reporting
The new system will shift VAT reporting towards full digitalization using eInvoices. Unlike the current fiscalization framework, which applies only to B2C transactions, Fiscalization 2.0 will extend to:
- Business-to-Business (B2B) transactions,
- Business-to-Government (B2G) transactions.
3. Administrative Simplification & Digital Tools
The reform aims to reduce administrative burdens by eliminating several tax forms.
To support businesses, the government will launch a free application, “FiskApplication”, designed for companies, freelancers, and professionals to review fiscalized data and streamline compliance.
4. Additional Updates from the Finance Minister
- Modernization of Financial Statement Registers: A new web-based application will improve access to the Register of Annual Financial Statements, requiring high-level authentication for security,
- Real Estate Tax Adjustments:
· Local governments must decide by February whether to adjust real estate tax rates, though most are expected to maintain current levels.
· Municipalities can collect the tax directly or delegate collection to the tax administration, similar to existing holiday home taxes.
· Tax adjustments will reflect tourist development indexes of specific locations.
- Recent Tax Policy Changes:
· Increased personal tax deductions
· Higher VAT registration thresholds
· Revised non-taxable income limits
Croatia’s Fiscalization 2.0 marks a significant step toward digital tax reporting, enhancing efficiency for businesses while modernizing VAT compliance.
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