Croatia: E-invoicing to become mandatory for domestic transactions
VAT-registered businesses must issue e-invoices starting January 1, 2026
Croatia's parliament on June 13, 2025, passed the new Fiscalization Act (Croatian), replacing the Act on Fiscalization of Cash Sales and introducing an electronic invoicing (e-invoicing) mandate for domestic business-to-business (B2B) transactions starting January 1, 2026.
The law requires VAT-registered businesses to issue e-invoices based on the EN 16931-1:2017 standards starting January 1, 2026. Paper invoices will be allowed only in exceptional domestic cases, such as cash or card payments subject to verification procedures, and when recipient identifiers are unavailable in the Croatian business directory. The mandate will require real-time e-invoice data transmission to the tax authority, including additional details like supplier bank account numbers, product codes (KPD), and digital signatures using certificates tied to the issuer's tax identification number.
Non-VAT-registered businesses and state entities must accept e-invoices starting January 1, 2026, and issue them by January 1, 2027, with small taxpayers required to use the MIKROeRUKUN application for compliance.
Penalties will apply for non-compliance, including failure to issue, receive, or validate e-invoices, improper use of digital certificates, and missed reporting deadlines.
The tax authority will publish the technical documentation, including the e-invoicing schema, format, and the details about the means of communication.
For further information, contact a KPMG tax professional:
Mateja Sobota Praštalo | matejasobota@kpmg.com
Philippe Stephanny | philippestephanny@kpmg.com
Ramon Frias | ramonfrias@kpmg.com