Fiscalization 2.0 is a new system that modernizes tax processes in Croatia. These changes, which take effect on January 1, 2026, will also impact taxpayers outside the VAT system, including flat-rate craftsmen with annual receipts up to 60,000 euros. We bring you the most important facts and steps to properly align your business with the new regulations and avoid potential fines that reach up to 50,000 euros.

What is Fiscalization 2.0 and Why is it Important for You?

Fiscalization 2.0 expands the existing fiscalization system to cover transaction accounts (e.g., bank transfers) and introduces mandatory electronic invoices (e-Invoices) for B2B transactions (invoices between domestic business entities). The goal is to increase transparency, reduce the gray economy, and automate the real-time reporting of tax liabilities to the Tax Administration. Although some obligations for you are postponed until 2027, preparation is crucial now.

Key Changes and Obligations for Non-VAT Taxpayers and Flat-Rate Craftsmen

For flat-rate craftsmen and taxpayers outside the VAT system, obligations are introduced gradually. Here is what you need to know:

  1. Receiving e-Invoices from January 1, 2026:
  • You are obligated to receive e-Invoices from suppliers who are in the VAT system. e-Invoices will arrive in a structured XML format (according to the EN 16931 standard), no longer via email or regular mail.
  • You do not have to issue e-Invoices in 2026, but from January 1, 2027, you will become obligated to issue them for B2B transactions (invoices to other business entities).
  • You must mark received e-Invoices as paid or rejected. You can do this through the free FiskAplikacija MIKROeRAČUN on e-Tax or via a software solution through a selected intermediary.
  1. Fiscalization of B2C Invoices from January 1, 2026:
  • Invoices issued to natural persons (final consumers) must be fiscalized regardless of the payment method, including bank transfers/collections to transactional accounts. Invoices must contain the JIR (Unique Invoice Identifier) and a QR code.
  • If you use a fiscal cash register, update it to support transactional accounts.
  1. Introduction of KPD Codes from January 1, 2027:
  • Every item on the e-Invoice (good or service) must be marked with a six-digit KPD code from the Classification of Products by Activity (KPD 2025). You can find the codes via the KLASUS application on the website of the Croatian Bureau of Statistics (https://web.dzs.hr/App/klasus/).
  • This applies only to B2B e-Invoices, not to B2C invoices.
  1. e-Reporting and Archiving:
  • From January 1, 2027, you must monthly report (by the 20th of the month) to the Tax Administration about e-Invoices, payments, and rejected invoices through the FiskAplikacija.
  • You must keep e-Invoices (received and issued) in the original XML format for 6 years in your digital archive. The Tax Administration keeps copies in its database for a total period of 11 years.
  • Other accounting documentation (e.g., records of receipts, contracts, non-fiscalized invoices) must be kept for 11 years in accordance with accounting regulations.

Exceptions and Relief Measures

  • Exceptions: Invoices issued to entities outside Croatia (EU or third countries) or non-profit organizations are not subject to Fiscalization 2.0 and can be issued as before. B2C invoices remain under Fiscalization 1.0, but with the extension to transactional accounts.
  • Benefit Measures: You can use the free Mikro eRačun application (available on the Tax Administration portal) for receiving e-Invoices in 2026. Flat-rate craftsmen remain outside the VAT system if annual receipts do not exceed 60,000 euros. If you exceed the threshold for entering the VAT system during the year, the Tax Administration will allow you to continue using the free MIKROeRAČUN application until the end of the current year.

 

How to Prepare: Steps for Business Adjustment

To ensure compliance, follow these steps:

  1. Select a Software Solution by December 31, 2025:
  • Register in the Metadata Service Address Book (AMS) for receiving e-Invoices. Select an authorized information intermediary (the list is available on the Tax Administration portal from September 1, 2025—note: the list is not yet complete as not all Intermediaries have received the necessary authorizations) or use the free Mikro eRačun application, in which case your Intermediary is the Tax Administration. If MIKROeRAČUN is an option you can and wish to use, you can do so by logging into e-Tax, and in the MIKROeRAČUN application, you need to select I ACCEPT the Tax Administration as the Intermediary.
  1. Update Software:
  • Check if your invoicing program supports the fiscalization of transactional accounts and e-Invoices. If not, update it or switch to a new solution. Ensure a stable internet connection for real-time data transmission.
  1. Classify Products/Services:
  • Start preparing KPD codes for your goods/services using the KLASUS application. This will save you time for the obligations starting in 2027.
  1. Test the System:
  • Use the test period from September 1 to December 31, 2025, to send and receive test e-Invoices. Register business premises via e-Tax.
  1. Ensure Archiving:
  • Set up a digital archive for storing e-Invoices (6 years) and other documentation (11 years). Check the validity of fiscal certificates and ensure backups.

Conclusion

Fiscalization 2.0 brings changes that require preparation, but with a timely reaction, you can ensure smooth business operations.

Author, Admin