Fiscalization 2.0 represents a significant step in the digitalization of accounting and business operations in Croatia. Its goal is to simplify administrative procedures, enable the electronic exchange of invoices between businesses, and increase the transparency of business transactions. While the implementation of new rules for VAT-registered businesses began during 2026, a new phase of the system's rollout is set to commence on 1 January 2027.

It is important to note that for businesses that already participate in the B2B e-invoicing system and are registered for VAT, there will be no significant changes to their daily operations as of 1 January 2027. During 2026, they are required to receive e-invoices, while from the beginning of 2027, the obligation to issue them also applies to business transactions for which the issuance of an e-invoice is mandatory. This extends the requirement for the electronic exchange of invoices to a larger number of business entities.

The most significant change, effective 1 January 2027, concerns businesses that are not registered for VAT. Throughout 2026, they are required to receive e-invoices, while from the beginning of 2027, the obligation to issue e-invoices for transactions covered by the law also comes into effect. Consequently, the requirement for the electronic exchange of invoices is extended to a broader range of business entities.

For business entities already using e-invoices, the focus remains on the proper execution of existing procedures, ensuring that accounting software remains compliant, and staying updated on regulatory changes. Attention should be paid to the accurate recording of business events, the application of appropriate KPD codes (KPD = Product Classification by Activity) to e-invoice line items, and the alignment of data between accounting records and the fiscalization system.

Practical example

Consider a small business that is registered for VAT and does business with other businesses. Throughout 2026, it issues and receives e-invoices, ensuring they undergo the mandatory fiscalization process. From 1 January 2027, it continues its operations in the same manner, without the need to implement an entirely new system simply because a new year has begun. The business remains obligated to adhere to existing rules and ensure that its accounting software and business processes stay aligned with current regulations.

Conversely, a small sole proprietorship not registered for VAT is required to receive e-invoices during 2026, though it is not yet generally obligated to issue them under the new system. As of 1 January 2027, it must begin issuing e-invoices for applicable domestic transactions. If it meets the prescribed criteria, it may utilize the free "MIKROeRAČUN" application, accessible via the "ePorezna" (e-Tax) system. In this way, the obligation to issue e-invoices extends to this group of business entities as well.

In conclusion, for businesses already engaged in B2B e-invoicing, 1 January 2027 does not represent a major turning point, but rather a continuation of the digitalization of accounting. The most significant change concerns businesses not registered for VAT, which will begin issuing e-invoices from that date forward. Timely preparation, adequate technical support, and adherence to the guidelines provided by the Tax Administration remain important for ensuring orderly and legally compliant business operations.

For assistance with getting started with the e-invoicing system and for any other information, please contact the experts from our accounting department.