As of 1 January 2026, the full implementation of Fiscalization 2.0 has begun – a reform that significantly changes the way eInvoices are issued, fiscalized, and monitored for tax purposes in Croatia. While public attention has primarily focused on the mandatory issuance of eInvoices in B2B transactions, the real transformation of the tax system lies in the eReporting process.
This mechanism allows the Tax Administration to gain continuous digital insight into the status, settlement, and potential rejection of invoices, fundamentally changing the logic of VAT calculation.
What Is eReporting and Which Transactions Does It Cover
Under the Fiscalization Act, eReporting is the process through which data on specific supplies, as well as information on the rejection and settlement of eInvoices, are submitted to the Tax Administration’s Fiscalization System.
It applies to eInvoices issued from 1 January 2026 onwards for domestic transactions subject to Croatian VAT, regardless of whether they are taxable or VAT-exempt. Invoices issued by the end of 2025, as well as invoices issued to final consumers that remain within the Fiscalization 1.0 regime, are not covered by this system.
Fiscalization 2.0 therefore consists of three interconnected processes: the issuance and receipt of eInvoices, the fiscalization of those invoices, and eReporting as a separate supervisory mechanism.
Who Is Required to Report
Reporting obligations are divided between the issuer and the recipient of the eInvoice.
The issuer is required to submit data on supplies for which an eInvoice could not be issued due to the recipient’s unavailability in the Address Book of Metadata Services (AMS), as well as data on the settlement of eInvoices, whether partial or full.
The recipient of the eInvoice is required to submit data regarding the rejection of an eInvoice.
Information on settlements and rejections must be submitted by the 20th day of the month for the previous month, which in practice requires precise monitoring of deadlines and clearly defined internal responsibilities.
How eReporting Affects the Right to Deduct Input VAT
One of the most important changes relates to input VAT deduction.
By submitting information about the rejection of an eInvoice, the recipient confirms that they will not exercise the right to deduct input VAT based on that invoice. This allows the Tax Administration to automatically obtain information about the status of the invoice and compare data between the issuer and the recipient.
The system thus enables faster and more efficient control of input VAT, reduces the risk of improper VAT deductions, and increases transparency in business transactions.
Settlement of eInvoices and Monitoring Payment Dynamics
Reporting on invoice settlements is particularly important.
The issuer must submit data on the settlement of all eInvoices that contain a positive amount in element BT-115 (amount due for payment). An invoice obtains the status “paid” only when the entire amount stated in this field has been settled through submitted settlement data.
In cases of partial payments, data must be submitted for each settled amount. In cases of compensations or assignments, reporting is performed for each individual invoice.
This is particularly relevant for taxpayers applying the cash accounting scheme for VAT, as it enables precise linking between the moment of payment and the creation of the VAT liability.
Treatment of Advance Payments
For advance payments, it is essential to correctly interpret field BT-115.
If an eInvoice is issued for a received advance payment and the value in this field is 0.00, there is no obligation to report the payment. However, when the final eInvoice is issued, an obligation to report may arise for the difference between the total amount and the previously paid advance.
This requires careful reconciliation between accounting records and the eReporting system.
New VAT Reporting Deadlines from 2026
Parallel to the introduction of eReporting, deadlines for submitting the VAT return (PDV), PDV-S and ZP forms are changing. The new deadline is the end of the current month for the previous month.
The obligation to pay VAT remains due by the end of the month.
At the same time, certain forms, such as OPZ-STAT, are being abolished, while the eReporting system becomes the primary source of data for tax analytics. This shifts tax supervision from periodic reporting to continuous digital monitoring.
FiskAplikacija as a Control Tool
FiskAplikacija enables the review of fiscalized data, invoice statuses (received, paid, rejected), and the matching of data between business partners.
The status “deviation” does not automatically mean that an invoice is tax-incorrect. It may indicate technical differences or timing discrepancies in data processing. Final verification is still carried out through the regular invoice verification process and internal controls.
What This Means for Businesses
Fiscalization 2.0 and eReporting represent one of the most significant changes in the Croatian tax system in recent years. Compliance with the new rules is no longer only a matter of correct VAT calculation but also of timely reporting, technical system readiness, and clear allocation of responsibilities within the organization.
Timely analysis of existing processes, adjustments to ERP systems, and testing of procedures can significantly reduce operational and tax risks.
If you are unsure how the new rules affect your business, VAT calculation, or internal invoicing and settlement procedures, contact CONEO Croatia. Our team of tax professionals can assist you in assessing risks, aligning processes, and adapting securely to the new regulatory framework — ensuring that eReporting becomes a tool for efficiency rather than an additional administrative burden.
