AMENDMENTS TO TAX LAWS as of January 1, 2026

The deadline for submitting the following returns is extended to the last day of the current month following the end of the taxation period:

• VAT Return
• European purchase list form (EPL form)
• European sales list form (ESL form)
• Report for supplies of goods to other EU Member States previously imported under procedures 42 and 63 (PZ 42 and 63).

As a result of the implementation of the Fiscalization 2.0 project, the following forms are abolished:

• Report on domestic supplies subject to reverse-charge mechanism (Form PPO)
• Book of incoming invoices (Form U-RA)
  

The above deadlines and abolition of forms will apply to VAT reporting for January 2026 (for VAT reporting for December 2025, current rules will still apply).

• An exemption from the obligation to issue invoices for domestic currency exchange transactions is introduced.

• In business-justified circumstances, a possibility is introduced to conclude an Advance pricing agreement for transactions that are already in progress.
• Pension and investment funds without legal personality are defined as a special category of taxpayers exempt from corporate income tax, enabling them to apply tax rates from Double Tax Treaties.
• Possibility of additional reduction of the tax base for sponsorship expenses already deductible for tax purposes is introduced, provided certain conditions are met.
• More detailed provisions regarding the possibility and conditions for claiming foreign tax credit are prescribed.
• Names of transfer pricing methods are harmonized with those in OECD Guidelines, and a possibility to use additional methods as prescribed by OECD Guidelines is introduced.

• An exception to the tax secrecy obligation is introduced for the exchange of analytical data on the collection of local taxes and personal income tax between the Croatian Tax Authorities and local or regional municipalities that are beneficiaries of such revenue.

• An exemption from the obligation to issue invoices is introduced for services exempt from VAT for which there is no obligation to issue invoices under special VAT regulations.

• The obligation to submit statistical reports on due but unpaid receivables (Form OPZ-STAT-1) is abolished. This change applies to unpaid receivables in 2026, meaning that Form OPZ-STAT-1 must still be submitted for 2025.

• Please note that as of 1 January 2026, the provisions of Fiscalization 2.0 will apply, which entail the following obligations:
  
  
  • Obligation to issue and fiscalize eInvoices in the B2B segment for domestic transactions
  • Introduction of product classification codes by activity (KPD), which become a mandatory element of eInvoices
  • Introduction of eReporting on collection, rejection, or inability to issue eInvoices
  • In addition to the existing obligation to issue eInvoices in transactions with government bodies or public contracting authorities (B2G), the obligation to fiscalize these invoices is introduced.
     
• Fiscalization in final consumption (B2C) is extended to invoices paid via bank transfers.