New Fiscalization Act

Croatia is entering a new era of fiscalization. As of January 1, 2026, the new Fiscalization Act (also referred to as “Fiscalization 2.0”) will come into force, representing the biggest change to the system since its introduction in 2013.

Fiscalization until the end of 2025

Up to now, fiscalization required entrepreneurs to report to the Tax Administration all invoices paid in cash or by card. However, invoices settled via bank transfers, for example between companies, were not subject to fiscalization. Such invoices were mostly exchanged in paper form or as PDF documents sent by e-mail. In other words, fiscalization so far mainly dealt with cash transactions and business-to-consumer relations, not with business-to-business operations.

Fiscalization 2.0 – from 2026 onwards

Starting in 2026, this framework will change. All invoices, regardless of whether they are paid in cash, by card, or via bank transfer, will have to be fiscalized. More importantly, businesses that are subject to VAT will be obliged to issue and receive only e-invoices. It will no longer be sufficient to send a PDF by e-mail or to print a paper invoice – invoices must be created in a standardized electronic format that the Tax Administration can immediately read and process.

Every issued and received e-invoice will automatically be fiscalized and reported to the Tax Administration in real time. All invoices and related documentation must be stored exclusively in digital form, in their original XML format, for at least 11 years. Issuers must report the payment of outgoing invoices, while recipients must report the rejection of incoming invoices and provide an address for receiving e-invoices.

Citizens will still receive their receipts in shops, cafés, or restaurants, but each receipt will now pass through the new digital system. For businesses, this means a serious adjustment – from choosing software solutions that support e-invoices, to training employees and adapting business processes.

A trial phase is scheduled for September 2025, during which businesses will be able to test their systems without penalties. As of January 1, 2026, the e-invoice obligation becomes binding for all VAT-registered businesses, and from 2027 it will be extended to small sole traders, associations, and other entities outside the VAT system. For them, the state will provide a free application called Mikro eRačun.

The new law will also prescribe penalties for non-compliance: for legal entities, fines will range from EUR 2,650.00 to EUR 66,360.00, while repeated violations can result in fines of up to EUR 92,900.00.