The consultation is set to conclude on 18 October 2025.
Croatia’s Ministry of Finance has amended the Value Added Tax Act (VAT) to align it with the Fiscalization Act, which mandates e-invoicing for domestic B2B transactions starting 1 January 2026. The VAT Act also aims to reduce VAT compliance costs.
The ministry also launched a public consultation on the amendment, which is open until 18 October 2025.
Croatia’s VAT system applies a standard rate of 25%, along with two reduced rates of 5% and 13%, and a 0% rate. According to the VAT system, businesses must register for VAT if their taxable supplies of goods or services exceed EUR 60,000 in the current or previous calendar year.
The amendment introduces several updates to streamline VAT processes. A significant change is that businesses will no longer need to get customer consent for electronic invoices on domestic B2B transactions, as e-invoicing will become mandatory. Additionally, the deadline for filing VAT returns, EU Sales and Acquisition Lists, and specific import reports will be extended.
The new rules also eliminate specific reporting requirements. Taxpayers will no longer need to file the “Book of Incoming Invoices” or the “Report on supplies subject to domestic reverse charge” with the tax authorities.
Finally, for businesses in Croatia, the obligation to issue invoices for currency exchange services will be removed.
The amendments to the VAT Act will go into effect from 1 January 2026 upon parliamentary approval.
This follows after Croatia’s parliament approved the new Fiscalization Act on 13 June 2025, replacing the previous Act on Fiscalization of Cash Sales.
Earlier, the parliament approved the Bill on Amendments to the VAT Act on 13 December 2024.
