Croatia to introduce obligatory B2B e-invoicing system by 2026

The Balkan country is set to become another state embracing B2B electronic invoicing in its transaction clearance flavor. This follows a 2019 introduction of B2G e-invoicing obligation.

The Croatian Ministry of Finance applied for an EU VAT directive derogation decision back in September 2023. Such a decision is necessary since the current shape of the directive prohibits member states from implementing pre-clearance invoicing systems, such as the planned Croatian one. With the application, the Ministry aims to introduce the domestic transaction electronic invoicing at the beginning of 2026.

The authorities have closely monitored similar implementations throughout European jurisdictions, considering the paths of Spain, France, Italy, or Hungary before settling on a decentralized continuous transaction control (CTC) real-time reporting system as it promises the best results to reduce the VAT gap significantly. The proposed system's technical details will be released in the coming months.

There’s more you should know about e-invoicing in Croatialearn more about the new and upcoming regulations.

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