February 22nd 2024

As we already mentioned in many of our blogs, the EU VAT Directive gave the guideline to make e-invoicing mandatory for B2G transactions. After this first phase of transition, many countries decided to expend the structured e-invoicing system to B2B transactions.

Croatia is no exception as in September 2023, the Ministry of Finance voted the launch of the B2B e-invoicing mandate for January 1st 2026.

This was announced by the Ministry under the tax Projekt Fiskalizacija 2.0. It included a public consultation period, recently completed, for an implementation originally in 2025, pushed now to 2026. Fiscalization 2.0 is set to introduce a decentralized e-invoicing model coupled with a continuous transaction control (CTC) reporting system for invoice data to the tax authority.

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The Central National Platform

A central national platform is already in place for the exchange of B2G e-invoices: Servis eRačun za državu. It works as a connector between all intermediaries from authorities’ contractors to customers and public purchasers. The central platform is also connected to Peppol, which allows all Peppol members to have access to the central platform.

Croatia chose a model that allows the connection of all participants with a single connection point (Peppol Access Point). It significantly facilitates the move towards e-invoicing for companies that are already Peppol members – or have an access to a Peppol Access Point.

As a matter of fact, the simple registration to Servis eRačun za državu gives the possibility to companies to easily outsource their e-invoicing and e-reporting processes and the exchange e-invoices with other companies that are registered on the platform.

The data required by the government will be obtained thanks to the fiscalization system, through the service provider, within a two-day deadline.

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The goal

Croatia is no exception to the major movement that is taking place in Europe. Croatian tax authorities want fight tax fraud and simplify the VAT reporting system but has also other arguments for the implementation of e-invoicing. Here are the measures proposed by the government:

  • Pre-filled forms for small and medium taxpayers
  • Abolishing a certain number of forms and extending deadlines
  • Digitalization of the submission and processing of VAT returns
  • Mandatory structured e-invoicing