Croatia’s New Fiscalization Act Explained: A Deep Dive into B2B, B2C, and E-Reporting Mandates 

Introduction: A New Era for Fiscal Compliance 

Croatia is entering a decisive phase in its digital tax journey with the adoption of the new Fiscalization Act, replacing the 2013 Act on Fiscalization in Cash Transactions. Effective from 1 September 2025, the law introduces a dual fiscalization model ‒ one for B2C and another for B2B/B2G ‒ plus a new e-Reporting channel for exceptional scenarios. 

This reform aims to consolidate Croatia’s fiscalization legacy into a comprehensive, decentralized clearance (CTC) system, aligning the country with EU standards while preserving real-time transaction oversight. 

Structure of the New Law 

The law establishes three distinct systems: 

• Fiscalization 1.0 (B2C) → Final consumption receipts, fiscalized in real time. 

• Fiscalization 2.0 (B2B/B2G) → Structured EN 16931 e-Invoices, fiscalized through dual reporting. 

• E-Reporting service → For scenarios outside fiscalization, such as invoice rejections, foreign invoices, or delayed issuance. 

Scope of Application 

B2B/B2G Invoices 

• Who is in scope (2026): VAT-registered taxpayers, corporate taxpayers, self-employed persons, freelancers, and public entities established in Croatia. 

• Domestic transactions only: Cross-border supplies (imports, exports, intra-EU acquisitions) are excluded. 

From 1 Jan 2026, VAT-registered taxpayers must issue and receive structured e-Invoices. 
From 1 Jan 2027, non-VAT entities (budget users, freelancers, craftsmen, etc.) will also be obliged to issue fiscalized e-Invoices. 

B2C Invoices 

• Applies to all entities already subject to fiscalization (retailers, service providers, notaries, etc.). 

• From 1 Jan 2026, fiscalization covers all consumer invoices, regardless of payment method (cash, card, or bank transfer). 

These remain in receipt format but must embed a JIR code, protective code (ZKI), and a QR code generated via the Tax Administration in real time. 

Timeline of Implementation 

• Until 31 Aug 2025 → Current 2013 Act applies; only cash/card receipts are fiscalized. 

• 1 Sep 2025 → New Fiscalization Act enters into force (legal framework); sandbox/testing begins. 

• Sep–Dec 2025 → Testing window: taxpayers, intermediaries, and vendors align systems. 

• 1 Jan 2026 (Go-live 1) → 

• B2C: All receipts fiscalized, independent of payment method. 

• B2B/B2G: VAT-registered taxpayers must issue & receive EN 16931 e-Invoices. 

• 1 Jan 2027 (Go-live 2) → Non-VAT entities also obliged to issue fiscalized e-Invoices. Paper invoices phased out. 

Fiscalization Mechanics 

B2C Process Flow 

• Invoice data transmitted from POS/cash-register software → Tax Administration (TA). 

• TA validates and returns a Unique Invoice Identifier (JIR). 

• Invoice printed/exported with JIR, ZKI, and QR code. 

Fallbacks exist for connectivity loss, device breakdown, or no-signal areas, but strict deadlines apply (2–5 days). 

B2B/B2G Process Flow 

1. Supplier generates a structured XML (UBL 2.1 + Croatian CIUS), signs it, and delivers it via AS4 access points. 

2. Supplier calls the EFiskalizacijaService to fiscalize the invoice (issuer side). 

3. Recipient must also fiscalize the invoice within 5 working days, closing the loop. 

4. TA issues acknowledgments (not JIRs) and both parties can monitor statuses in FiskAplikacija. 

E-Reporting: the Auxiliary Channel 

For scenarios outside standard fiscalization, Article 52 introduces EIzvještavanjeService. This must be used for: 

• Invoice rejections (recipient side) 

• Payment collections (issuer side) 

• Foreign/import invoices 

• Deliveries without invoice (when buyer endpoint missing) 

These reports must be filed within 5 working days (or by the 20th of the following month for rejections). 

Self-billing and Cross-border Flows 

Self-billing (buyer issues in seller’s name) is allowed under Business Process P12, but only for domestic transactions. 
Cross-border self-billing is excluded from fiscalization and must instead be reported via e-Reporting. 

Technical Framework 

• Invoice format: EN 16931 XML in UBL 2.1, extended by Croatian CIUS. 

• Transport: AS4 protocol with mutual TLS. 

• Access points & intermediaries: Must pass conformance tests, maintain ISO 27001 + GDPR compliance, and publish endpoints in the national AMS (Address-book of Metadata Services) via MPS (Metadata Publishing Service). 

• Digital signatures: SOAP envelopes must always be signed with a qualified certificate. XML invoice signature optional but common. 

Compliance & Penalties 

• Failure to issue/fiscalize: €2,650 – €66,000 for companies; €265 – €6,650 for individuals. 

• Failure to e-report: €1,330 – €13,300 for companies; €130 – €1,330 for individuals. 

• Tampering with software: Up to €66,000 fine + closure of premises up to 30 days. 

• Retention breaches: Fines up to €26,500; invoices must be archived for 11 years. 

Repeat infringements double the fines and closure periods. 

Strategic Implications 

This reform transforms Croatia’s fiscal landscape by: 

• Extending fiscalization to all B2C payments, removing loopholes. 

• Embedding dual-sided e-Invoice reporting for B2B/B2G, increasing accountability. 

• Providing a structured path for non-VAT entities to join by 2027. 

• Introducing an auxiliary e-Reporting layer to handle exceptions without weakening control. 

For businesses, the immediate priority is system readiness: aligning ERP/cash-register software with EN 16931 CIUS, onboarding via AMS/MPS, obtaining certificates, and testing with intermediaries during late 2025. 

This article is for informational purposes only and does not constitute legal or tax advice. The Fiscalization Act and related bylaws may be further clarified or amended. Businesses should consult their own legal, tax, or IT advisors to determine how the rules apply to their specific operations. 

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