Croatia Approves Nationwide E-Invoicing and Reporting Mandate

The Government of the Republic of Croatia has officially approved the Law of Fiscalization, introducing mandatory e-invoicing and reporting for B2B transactions, along with expanded requirements for B2G and B2C transactions.

B2B & B2G Transactions

One of the most significant changes is that both business-to-business (B2B) and business-to-government (B2G) transactions, whether the taxpayer is the issuer or recipient, will now be subject to mandatory reporting through Croatia’s fiscalization system using a decentralized CTC exchange model.

Only structured e-invoices will be permitted for these transactions.While B2G e-invoicing already exists in Croatia, the new law extends the requirement to report all such invoices to the fiscalization system.

Issuers of e-invoices must report payments using a new service called “e-Reporting”, which also allows buyers to reject received e-invoices if necessary.

B2C Transactions

Since 2013, businesses have been required to report cash, card, or check payments to the fiscalization system. The new law expands this to include online payments such as bank transfers, Google Pay, PayPal, and similar methods, all under the same pre-clearance model.

Implementation Timeline

September 1, 2025: Testing of the e-invoicing environment for B2B & B2G transactions begins.

January 1, 2026:

Online payments for B2C transactions must be reported to the fiscalization system.

All VAT-registered businesses must issue and receive e-invoices for B2B & B2G transactions and report them accordingly.

Non-VAT-registered entities (including income/profit taxpayers and public entities) must be able to receive and report e-invoices.

January 1, 2027:

Non-VAT-registered entities must also issue e-invoices and report them to the fiscalization system.

This reform marks a major step in Croatia’s transition toward real-time tax reporting and digital compliance, aligning closely with the EU’s ongoing ViDA initiative.