Tax Audit Law in Croatia

Tax Compliance 2.0 in Croatia: Electronic Invoicing and Reporting as Distinct Obligations

Effective January 1, 2026, the Croatian Tax Audit Law requires taxpayers registered for VAT purposes to issue and receive structured electronic invoices for their domestic transactions. The reform also expands tax oversight of transactions through electronic data reporting, meaning compliance goes beyond simply replacing paper or PDF invoices.

Electronic invoicing governs the exchange of documents between supplier and customer, while tax compliance involves reporting information on issued and received invoices to the tax authority. Added to this process are e-reporting obligations, such as declaring payments received by the 20th of the following month. These processes are interconnected, but each requires specific workflows and controls.

For companies, the operational challenge lies in coordinating accounts receivable and accounts payable, generating and receiving documents in a structured format, and correctly recording the data needed to identify each recipient. Electronic invoicing requirements in Croatia thus affect invoicing systems, ERP systems, and the quality of the information used in each transaction. Proper integration allows these tasks to be performed using standard systems, thereby reducing manual intervention and reporting errors.

This video offers a quick overview to distinguish between these two obligations and understand the basic compliance process. It can be especially useful for tax, finance, and IT teams that need to identify which processes require review. The webinar on electronic invoicing and e-reporting in Croatia addresses the integration architecture and operational preparation for Fiscalization 2.0 in greater detail.