Croatia’s digital tax revolution: The new era of e-invoicing and e-reporting

This article was last updated on 4 May 2026 to incorporate updates relating to the recently released new version of the Fisk Application, which introduced direct taxpayer-facing functionality improving daily operations.

Croatia’s Fiscalisation Act, known as "Fiscalisation Project 2.0", is now live and operational, mandating B2B e-invoicing and real-time e-reporting for VAT-registered entities since 1 January 2026. This launch marks the first phase of a broader rollout, with the mandate for small, VAT-exempt businesses set to follow on 1 January 2027. Since the initial launch, the Tax Administration has deployed extensive support tools, guidance, and a production web service, enabling the successful processing of millions of e-invoices and significantly expanding digital tax compliance.

Croatia has embarked on a significant transformation in its tax compliance landscape with the introduction of the new Fiscalisation Act, a pivotal piece of legislation that will reshape how businesses handle invoicing and reporting. Published in Official Gazette 89/25 on 13 June 2025 and entering into force on 1 September 2025, this Act signals a move towards greater digitalisation. While mandatory business-to-government (B2G) e-invoicing has been in place since 2019, Fiscalisation 2.0 expands this scope dramatically, ushering in mandatory domestic business-to-business (B2B) e-invoicing and real-time e-reporting.

‍To understand the significance of this change, it's helpful to look at Croatia's journey with e-invoicing. Since 2019, businesses engaging with the government have been required to use electronic invoices. This initial step laid the groundwork for the broader digitalisation now being implemented. Fiscalisation 2.0 represents an evolution, aiming to extend these efficiencies and transparency gains across all business transactions.

What changed? The core of the new Fiscalisation Act

While Croatia has had mandatory B2G e-invoicing since 2019, this new Act dramatically expands the scope. The key objectives of Fiscalisation 2.0 are clear: to establish a framework for mandatory B2B e-invoicing, create a system for digital invoice auditing, and implement an advanced electronic accounting system.

The mandate is now live since 1 January 2026 for VAT-registered businesses issuing/receiving domestic eRačun invoices via certified access points, with dual e-reporting (issuer & recipient) to the Tax Administration's Fiscalisation System. The law establishes digital invoice auditing and advanced electronic accounting across these transactions.

‍Here’s a breakdown of the critical changes:‍

Mandatory B2B e-invoicing (eRačun)

‍Since 1 January 2026, all resident, VAT-registered businesses are obligated to issue and receive electronic invoices (eRačun) for domestic transactions via certified access points. This mandate also extends to income tax/profit tax taxpayers (even if not VAT-registered) and various state and local government entities.

‍To ensure a smooth transition, the rollout of the mandate is phased:

• 1 September 2025: Start of a voluntary testing phase, allowing businesses to integrate and test their e-invoice and e-reporting systems with the Tax Administration's platform.

• 1 January 2026: Start of mandatory B2B e-invoicing for VAT-registered businesses. Non-VAT registered businesses must also be able to receive e-invoices.

• 1 January 2027: The obligation to issue e-invoices extends to small, VAT-exempt businesses.

‍These e-invoices must comply with the EU standard EN 16931, complemented by specific technical specifications issued by the Croatian Tax Administration (such as UBL 2.1 + Croatian CIUS). E-invoices will primarily be exchanged through secure certified information intermediaries, ensuring standardised formats and interoperability across different systems.

E-invoices generated under this Act are considered credible legal documents. Their authenticity and integrity must be maintained for ten years from the end of the year they were issued. Businesses will also need to link their goods and services to the appropriate six-digit classification codes from the Classification of Products by Activity (Klasifikacija proizvoda po djelatnostima, or short KPD), maintained by the State Bureau of Statistics.

Real-time e-reporting (eIzvještavanje)

‍Alongside e-invoicing, the Act also introduces a robust e-reporting mechanism, providing the Tax Administration with near real-time insights into transactions. Both the issuer and the recipient must submit prescribed data to the Tax Administration's Fiscalisation System.

‍This dual reporting involves the use of digital certificates, with issuers reporting at the point of issuance (or, for self-issued invoices, within five working days) and recipients within five working days of receipt. Comprehensive data, including invoice details, item specifics with KPD classification codes, payment identifiers and more, must be submitted for automated verification. The system is designed to cross-verify data submitted by both parties, significantly reducing discrepancies and aiding in fraud detection.

‍It’s worth calling out at this point that e-reporting will also be required for those exceptions where an e-invoice couldn’t be issued (e.g., due to unavailable recipient identifiers in the government's address book). Finally, businesses will also need to report e-invoice rejections and collections to the Tax Administration by the 20^th.

‍The production fiscalisation web service, launched in November 2025, enables software integration for real-time data submission.

Supporting infrastructure and benefits

The Croatian Tax Administration is developing a comprehensive digital ecosystem to support this change. This includes the live Government Directory (Adresni Metapodatkovni Servis, or in English Address Metadata Service, short AMS - a central address book of taxpayers and approved e-invoicing service providers - upgraded in April 2026 with CSV/XLSX export), the free FiskAplikacija (short for Application for fiscalisation and e-Reporting) for reviewing fiscalised data and managing e-invoice exchange authorisations, and the MIKROeRAČUN (which loosely translates to micro-e-invoice) application for smaller, non-VAT registered businesses starting 1 January 2027. Third-party e-invoicing partners also play a role, provided they meet cybersecurity and certification requirements.

For instance, Banqup Group has formed an exclusive partnership with Hrvatski Telekom (Croatia's leading telecommunications provider) to deliver e-invoicing and financial administration services to the Croatian SME market. This collaboration sees the Banqup platform fully embedded within Hrvatski Telekom’s service offering for business customers, including the migration of all existing e-invoicing customers of Hrvatski Telekom. This positions the companies to support businesses with a seamless transition into the mandatory B2B e-invoicing regulation.

Implementation progress (May 2026)

Fiscalisation 2.0 is fully operational, successfully processing over 23.5 million e-invoices by March 2026 with a success rate exceeding 99% and connecting 316,000 taxpayers.

The preceding preparation phase in September and October 2025 saw the publication of key documentation, including MIKROeRAČUN instructions, technical specifications (AS4/P-Mode), and the initial list of certified intermediaries. The production web service went live in November 2025, enabling critical software integration.

Following the mandatory commencement, the system processed 1.6 million e-invoices in the first two weeks of January 2026. Since then, the Tax Administration has continued to dedicate efforts to extensive support, including updating validators and schemas, publishing comprehensive FAQs and guidance, and undertaking ongoing technical fixes and upgrades to the FiskApplication (such as CSV export and improved search functionality).

Despite this success, common early challenges included unconfirmed access points, software misalignment, and missing necessary authorisations, issues the Tax Administration addressed by emphasising cooperation and avoiding penalties during the initial stabilisation period.

Benefits and business readiness

‍The benefits of this ambitious digitalisation push are expected to be substantial, ranging from simplified tax declarations and a reduction in paper forms to enhanced transparency and fraud prevention. The shift to digital archiving also offers environmental advantages.

With the mandatory B2B e-invoicing for VAT-registered entities having commenced on 1 January 2026 and millions of e-invoices already fiscalised since then, the current priority is to ensure full and ongoing compliance. Businesses must now focus on optimising their internal systems, maintaining enhanced security measures, and staying informed of updates from the Tax Administration, particularly in anticipation of the 1 January 2027 mandate for small, VAT-exempt businesses.

Stay ahead of the curve

‍Croatia’s Fiscalisation Act represents a bold step towards a modern, digital tax environment, aligning with broader EU initiatives like the VAT in the Digital Age reforms. Businesses that proactively adapt will be well-positioned to navigate this new landscape and reap the efficiencies it promises.

‍Navigating the complexities of new tax legislation can be challenging. Our team of experts is on hand to provide the information and guidance you need to ensure a smooth transition to Croatia's new e-invoicing and e-reporting regime.

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