Croatia's Fiscalization 2.0: Mandatory E-Invoicing & VAT System Update

February 5, 2025

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The Croatian Ministry of Finance announced the Fiscalization 2.0 project a few years ago as a transformative reform toward a new, more digitized tax system. The project includes implementing a system for non-cash payments through e-invoices, an integrated e-archive, and advanced online accounting in the VAT system.

In addition, the Croatian government announced the launch of a free application, FiskAplikacija, that allows taxable persons to access and review relevant fiscalized data.

Implementation of E-invoicing System

At the press conference organized by the Ministry of Finance, Croatian Deputy Prime Minister Primorac announced that the Fiscalization 2.0 project would be launched next year. Launching the project means the implementation of mandatory business-to-business (B2B) and business-to-government (B2G) e-invocing.

As the Deputy Prime Minister stated, this comes as a natural consequence after the Fiscalization 1.0 Project was successfully executed, which introduced real-time reporting of business-to-consumer receipts.

The introduction of mandatory e-invoicing should improve the current VAT reporting system and will include payment over the platforms. For the government, this means better monitoring of all transactions and insight into the business activities of taxable persons.

Some benefits taxable persons should feel include simplified tax returns and overall administration relief. These include reducing the number of required accounting and bookkeeping forms and the possibility of sending attachments to invoices, thus reducing paperwork.

The free government FiskAplikacija application will allow businesses, individuals, and freelancers to access all relevant fiscal and VAT data. Furthermore, the Deputy Prime Minister announced the Register of Annual Financial Statements redevelopment via a web application.

Conclusion

Following the latest announcement by the Croatian Deputy Prime Minister, it is expected that in 2025, the government will release additional vital information regarding implementing mandatory B2B and B2G e-invocing. Therefore, it is recommended that all taxable persons monitor for any updates on the matter and start preparing for the upcoming changes.

Source: Ministry of Finance

What is Fiscalization 2.0, and why is it being implemented?

Fiscalization 2.0 is a Croatian government initiative aimed at digitizing tax reporting by introducing mandatory e-invoicing, an integrated e-archive, and enhanced VAT compliance.

When will mandatory e-invoicing be implemented in Croatia?

The Croatian government plans to launch mandatory B2B and B2G e-invoicing in 2025 as part of the Fiscalization 2.0 project.

Who is required to comply with the new e-invoicing system?

All businesses engaging in business-to-business (B2B) and business-to-government (B2G) transactions will be required to adopt the e-invoicing system.

What are the benefits of e-invoicing for businesses?

E-invoicing simplifies tax returns, reduces administrative burdens, enhances VAT reporting, and minimizes paperwork by allowing digital attachments to invoices.

What is FiskAplikacija, and how does it help businesses?

FiskAplikacija is a free government application that provides businesses, freelancers, and individuals with access to fiscalized transaction data and VAT-related information.

How should businesses prepare for Fiscalization 2.0?

Businesses should monitor government updates, ensure their accounting software supports e-invoicing, and prepare for compliance with the new VAT reporting system.

VAT Compliance and Reporting

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