On 13 June 2025, Croatia officially published its new Fiscalization Law in the Official Gazette. This development marks the official launch of “Fiscalization 2.0,” a project aimed at modernizing the country’s tax and transaction framework. The new law mandates the use of e-Invoicing and real-time transaction reporting for a broad range of business transactions.
Mandatory e-Invoicing for B2B and B2G
The new law introduces a decentralized e-Invoicing model that applies to domestic B2B (business-to-business) and B2G (business-to-government) transactions. Issuers and recipients must use certified information intermediaries to send and receive e-Invoices. Small businesses not registered for VAT will be offered a free government-provided application to meet these requirements.
All e-Invoices must follow the European Standard EN 16931, with specific local adaptations. Importantly, both the issuer and recipient have responsibilities to report these invoices: issuers must report at issuance, and recipients within five working days after receipt.
CTC reporting now covers B2C as well
Continuous Transaction Controls (CTC) are also part of the update. The law requires real-time reporting for B2C (business-to-consumer), B2B, and B2G transactions. This reporting is designed to simplify VAT reporting and replace certain traditional tax return obligations.
Metadata Services Directory to support compliance
To ensure accurate taxpayer identification, the law introduces a Metadata Services Directory (AMS). This centralized directory will help verify participant details across the invoicing and reporting ecosystem, reducing administrative friction and error.
Implementation starts in September 2025
- 1 September 2025: Testing environment opens for voluntary use
- 1 January 2026: Mandatory e-Invoicing and reporting for VAT-registered businesses
- 1 January 2027: Obligations expand to non-VAT registered businesses and public organizations
What businesses should do next
Companies operating in Croatia should begin preparations now. This includes selecting a certified intermediary, updating invoice formats, and integrating with the new reporting systems. For those handling cross-border or mixed transaction types, early testing is recommended to manage compliance risks before the 2026 deadline.
