Obligation to issue and fiscally validate e-invoices (eRačun) between taxpayers in Croatia takes effect on January 1, 2026, based on the Fiscalization Act published in the Official Gazette 89/25. The rule applies to domestic (B2B and B2G) transactions and will gradually expand in 2027 to additional subjects not in the VAT system.
From September 1, 2025, all participants and intermediaries can test their software and procedures to prepare for full implementation. Only structured electronic invoices are accepted for tax purposes; PDF invoices sent by email are not recognized as valid tax documents.
E-invoices must comply with EU standard 16931-1:2017 and the Tax Administration’s national specification. The law defines business processes covered, including regular, advance, final, partial, corrected, or self-issued invoices, as well as storno and credit notes.
The obligation applies to domestic supplies subject to Croatian VAT, regardless of whether VAT is charged or exempted, including advance payments, provided both parties are Croatian taxpayers. International supplies (EU acquisitions, imports, exports) are not subject to these e-invoice rules.
Issuers must link invoice lines to their correct product classification code (KPD) and carry out fiscalization for every e-invoice in a timely manner. Recipients must provide technical identifiers before receiving e-invoices, accept invoices through approved channels, and perform fiscalization for received invoices within five working days.
Fiscalization involves automatically transmitting defined invoice data to tax authorities using certified digital solutions and certificates, without physical or human validation. If technical issues prevent fiscalization, it must be completed within five working days after resolution.
A dedicated application (MIKROeRAČUN) by the Tax Administration will be available for small businesses outside the VAT system to issue, receive, and archive e-invoices free of charge. Authorized intermediaries must pass compliance testing and submit documentation on data protection and certification.
The new framework is expected to significantly reduce administrative burdens by eliminating multiple old reporting and record-keeping requirements (e.g. sales and purchase books, donation reports, specific VAT and statistical forms). Certain deadlines for submitting VAT returns are extended under the new regime.
Obligation starts with all VAT payers in 2026 and gradually affects other entities from 2027. These changes aim to modernize tax reporting, improve transparency, and streamline compliance for Croatian businesses.
