Croatia’s New Fiscalisation Law to Transform Invoicing From 2026

Mandatory E-Invoicing to Replace Paper and PDF Across All Businesses

Croatia will introduce a major overhaul of its fiscal system on 1 January 2026, when the new Fiscalisation 2.0 law comes into force. Under the reform, all companies registered for VAT will be required to issue exclusively electronic invoices, replacing traditional paper or PDF formats. The measure extends fiscalisation to all B2B transactions, meaning every invoice, regardless of whether payment is made by bank transfer, card or cash, must be processed through the national e-invoicing system.

The government expects the shift to significantly reduce administrative burdens and increase transparency, estimating savings of up to €120 million annually for businesses.

Companies will need to adopt XML-based invoicing, digital data storage and certified software solutions, prompting many to upgrade their systems and train staff ahead of the 2026 deadline.

Authorities say the reform will modernise Croatia’s business environment, improve tax compliance and align the country with EU-wide digital standards. While firms face initial adaptation costs, the new framework is intended to streamline daily operations and create a more efficient, fully digital invoicing ecosystem.

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