Croatia Confirms Mandatory B2B and B2C E-Invoicing starting January 2026: Fiscalization 2.0 Project

The Croatian government has confirmed the introduction of electronic invoicing between businesses starting January 1, 2026.
The mandate will also apply to all B2C transactions, regardless of the payment method (cash, card, bank transfer, etc.).
The Fiscalization 2.0 project marks the beginning of a broader fiscal modernization effort in Croatia. Its goal is to facilitate the transition to B2B e-invoicing, archiving, and digital accounting.
Croatia’s Fiscalization Law establishes the mandatory use of electronic invoicing (eInvoice) and real-time transaction reporting (e-Reporting) as of January 1, 2026. From that date, paper invoices will be gradually phased out and replaced by electronic invoices, with full implementation expected by January 1, 2027. This mandate will cover domestic transactions between VAT-registered taxpayers. Paper invoices will still be allowed for cross-border transactions.
It’s worth noting that B2G e-invoicing (between businesses and public administrations) has been mandatory in Croatia since 2019. The institution FINA is responsible for managing B2G e-invoice transmission through the national platform eRačun. Direct connection to the platform is made via Peppol. FINA is a certified Peppol Access Point and can communicate with any other Access Point, including EDICOM’s.
E-Invoicing Law in Croatia
Croatia has implemented a new law regulating the mandatory real-time use of e-invoicing. This law requires that all domestic transactions be reported to the Tax Authority in real time, including:
- Issued invoices (Accounts Receivable)
- Received invoices (Accounts Payable)
- All payments received, to be reported monthly by the 20th of the following month
This new law replaces the former Law on Cash Transaction Fiscalization and significantly expands its scope to include:
- B2C: All receipts issued to consumers, regardless of payment method
- B2B: Mandatory e-invoicing between businesses
- B2G: Mandatory e-invoicing between businesses and government entities
The law requires all electronic service providers to be capable of exchanging documents via the AS4 protocol. In the absence of final technical specifications, the law permits the use of Peppol and EDI standards.
Invoice Workflow Model in Croatia
Croatia has opted for a real-time reporting model in which documents are sent to the government’s central platform. The sender submits invoice data in XML format to the national platform and is also responsible for delivering the electronic document to the recipient.
To that end, the government platform will include a metadata directory detailing the preferred format and communication protocol through which each company wishes to receive electronic documents. It is the recipient’s responsibility to provide the Tax Authority with its identifier for receiving e-invoices.
Once the required data has been declared, the government platform will provide the sender with the necessary recipient details to ensure proper delivery of the document.
Implementation Timeline
Starting September 1, 2025
- The updated Tax Authority system will be available for testing by businesses and technology providers. This early access environment will allow companies to test key functionalities such as e-invoice exchange, fiscal signing, and electronic reporting. The goal is to provide all stakeholders with sufficient time to adapt their systems before the official mandate begins.
Starting January 1, 2026
- The obligation to issue and receive electronic invoices applies to all VAT-registered taxpayers. The obligation to receive e-invoices will apply to:
- Businesses
- Sole traders
- Self-employed professionals
- State administration bodies
- Local and regional government units
- Budgetary and extra-budgetary entities listed in the official register, even if not VAT-registered
- The mandate also applies to all B2C transactions, regardless of payment method. The platform will function as a clearance model where validation is performed before the invoice reaches the recipient.
Starting January 1, 2027
- The obligation to issue electronic invoices will also be extended to budgetary and extra-budgetary entities not registered for VAT.
Fiscalization Project 2.0
In January 2023, the Croatian Ministry of Finance published the Fiscal Project 2.0 with three objectives:
- Establish a framework for mandatory B2B electronic invoicing.
- Create a system for digital account auditing.
- Implement an advanced system of electronic accounting.
The project is expected to conclude in December 2024. Companies in Croatia will have to adapt their current invoicing and reporting processes to comply with the new requirements.
Fiscal Project 2.0 aims to implement a cashless payment system through e-Invoicing with an integrated electronic file and an active, unique, and advanced online accounting system within the VAT system in order to ensure a range of benefits for all stakeholders and business entities:
- Simplified tax declarations.
- Reduction in the number of required forms (tax accounting), accuracy of tax obligations, and largely prior compliance with data from the eRačun platform.
- Transparent business and the ability to know payment conditions and compliance with them.
- Understanding of the current operations of an individual taxpayer.
- Current credit checks.
- Contribution to environmental protection using a digital accounting file instead of paper.
- Reducing the number of invoice copies and archiving them through intermediaries.
- The ability to attach files to the invoice and alleviate paperwork burden.
- Improving interoperability among parties involved in the invoicing process.
- The ability to track and link accounts and prevent VAT refund-related tax fraud.
- Business entities receive support for more efficient and competitive operations in the national and global context.