Croatia: Fiscalization 2.0 to introduce eInvoices for VAT reporting
A new tax package titled “Fiscalization 2.0” will be introduced next year, marking a significant shift in the VAT reporting system.
Key announcements from the conference
- Introduction of Fiscalization 2.0: Finance Minister Marko Primorac stated that the tax package is in its final stages of preparation, with several laws set to be amended. The draft legislation will soon be open for public consultation, with implementation expected next year.
- eInvoices for VAT reporting: The new system will focus on digitizing VAT reporting through eInvoices. Unlike the existing fiscalization framework, which covers transactions between businesses and end consumers, Fiscalization 2.0 will expand to include:
- Transactions between businesses (B2B)
- Transactions between businesses and the state (B2G)
- Administrative relief and digitization: The system aims to reduce the administrative burden for taxpayers by eliminating a number of tax forms. To support businesses, a free application, “FiskApplication,” will be developed for use by companies, craftsmen, and liberal professions. This application will provide features such as reviewing fiscalized data.
Additional updates from the Finance Minister
- Reengineering of financial statement registers: A new web application will modernize the Register of Annual Financial Statements, accessible with high-level credentials.
- Real estate tax updates: Local self-government units have until the end of February to decide whether to adjust real estate tax rates. Early indications suggest that most units will keep the rates unchanged.
- The collection of this tax can either be handled directly by the local self-government units or delegated to the tax administration, a practice already applied to taxes on holiday homes.
- The tax remains a key source of local revenue and has been adjusted to reflect the tourist development index of specific locations.
- Recent tax changes: The government has recently increased the basic personal deduction, raised thresholds for entering the VAT system, and adjusted the amounts of certain non-taxable receipts.
Source: mfin.gov.hr
