The digital transformation of European tax systems is progressing, and Croatia is positioning itself as a pioneer with its Fiscalization 2.0 project. The country is fundamentally modernizing its tax processes, focusing on mandatory eInvoicing and real-time transaction reporting. This will result in far-reaching changes and new technical requirements for companies operating in Croatia.

From 2026: Croatia introduces mandatory eInvoicing for B2B and B2C

With the launch of Fiscalization 2.0, Croatia is taking a major step toward digitization and transparency in accounting. From January 1, 2026, all VAT-registered companies in Croatia must be able to issue and receive eInvoices for all domestic B2B and B2C transactions. Croatia is thus pursuing an even more comprehensive approach than many other European countries – the obligation applies not only to business customers, but also explicitly to private customer transactions.

In a further step, the regulation will be extended to state and extra-budgetary entities from 2027, even if they are not registered for VAT. This underlines how comprehensively and sustainably Croatia is driving forward digitalization in accounting.

Technical innovations: real-time reporting and modernized infrastructure

At the heart of the Croatian reform is the concept of real-time reporting:

In future, all invoices issued and received must be reported in real time. This places greater demands on accounting and IT systems and ensures that all tax-relevant business transactions are recorded directly and completely by the Croatian tax authorities.

Another technical focus is on the mandatory use of the AS4 protocol and support for Peppol and EDI standards. The infrastructure is thus clearly aligned with international requirements and ensures compatibility with European partner countries. For companies, this means that the eInvoicing solutions they use must reliably support these standards by 2026 at the latest.

A test phase will begin in Croatia in September 2025, during which companies can prepare their systems for the new requirements and gain initial practical experience.

Linking to proven platforms: eRačun and Peppol

Croatia is building on existing strengths for Fiscalization 2.0:

The country has already established a functioning B2G e-invoicing system that has been running for several years, mainly via the eRačun platform. The platform is also already linked to the Peppol network, meaning that Croatian companies and public authorities can now benefit from a proven technical basis. The expansion to B2B and B2C is therefore the logical next step – and is being implemented on an existing, secure infrastructure.

Step-by-step implementation and outlook

With Fiscalization 2.0, Croatia is requiring all taxable companies to comprehensively digitize their invoicing processes and provide the tax authorities with near real-time transparency. Implementation will take place in several steps:

• From September 2025: Start of the test phase for companies
• From January 2026: Mandatory eInvoicing for all companies subject to VAT in Croatia for domestic B2B and B2C transactions
• From 2027: Extension to public and other entities, even if they are not subject to VAT

Croatia sets new standards in the digitization of tax administration

The Fiscalization 2.0 project makes Croatia one of the most advanced countries in Europe in terms of digital tax processes. Companies operating in Croatia or doing business with Croatian companies and customers need to act now: The requirements for electronic invoicing and real-time reporting are clearly defined and the timeline is ambitious.

Those who tackle the digital transformation in Croatia in good time will benefit from more efficient processes, fewer sources of error, and a future-proof connection to the European e-invoicing ecosystem.