The Fiscalization Act was passed at a session of the Croatian Parliament and published on 13 June 2025 in the Official Gazette, No. 89/25. This Act repeals the existing Fiscalization in Cash Transactions Act (OG No. 133/12 – 114/23) and establishes a unified tax and legal framework for:
the fiscalization of all invoices in the B2C (business to consumer) segment
the issuance and fiscalization of eInvoices between taxpayers in the B2B (business to business) segment, and
the fiscalization of invoices issued between taxpayers and public bodies in the B2G (business to government) segment.
eInvoice = an invoice that is issued, sent, and received in a structured electronic format (XML), allowing for its automatic and electronic processing.
According to the Fiscalization Act, the following entities are obliged to issue, receive, and fiscalize eInvoices:
- Taxpayers with a business establishment in the Republic of Croatia – i.e., those with a registe-red office, permanent residence, or habitual residence in Croatia and who are registered for VAT.
- Taxpayers not in the VAT system but subject to personal income tax from self-employment under the Income Tax Act or corporate profit tax under the Corporate Tax Act, and who are resident or established in Croatia.
- State administration bodies, local and regional self-government units, as well as budgetary and extra-budgetary users of the state budget and the budgets of local and regional units, entered in the Register of Budget Users.
The Fiscalization Act applies to eInvoices arising from domestic transactions, i.e., transactions subject to Croatian VAT (whether taxable or exempt under the Croatian VAT Act), including received advance payments – provided that both the issuer and the recipient of the eInvoice are taxpayers with residence or establishment in Croatia.
The Fiscalization Act enters into force on 1 September 2025, while its implementation is planned in different phases. The most significant changes will apply from 1 January 2026, and a transitional period is provided until then for businesses to adapt to the new system.
Please keep in mind the fact that legislation tends to change frequently. This article is therefore necessarily based on our understanding and correct interpretation of the law and practice at the time of issuing this article. This article will not be updated due to changes in legislation that occur after this article is issued.