Background
In 2019, the Croatian government introduced a transformative electronic invoicing system, making it mandatory for transactions between businesses and public entities. This-Invoice system, known as ‘Servis eRačun za državu,’ represents a significant leap forward in streamlining the issuance and reception of invoices and enhancing the efficiency of utilizing the Peppol network.
New e-Invoice obligation for B2B Transactions
It is important to note that while this electronic invoicing system is mandatory for transactions involving public entities, it does not impose the same obligation on business-to-business (B2B) transactions. This approach allows businesses to retain some flexibility in their invoicing methods, while still benefiting from the advantages of electronic invoicing when interacting with public entities in Croatia.
Expected implementation timeline
With the latest news, in September 2023, the Croatian government submitted a formal request for an exception to the EU VAT Directive, which currently enforces the compulsory adoption of e-invoicing. Typically, the process of obtaining such approval can take some time which is uncertain now. Croatia’s Ministry of Finance is working towards implementing this exception, intending to apply it exclusively to domestic transactions starting on January 1, 2026.
