Fiscalisation 2.0 project
Kofax recently issued an update in respect of Croatia’s Fiscalisation 2.0 project, where the e-invoicing trajectory appears to be building steadily. The project imposes e-invoicing obligations, as well as those relating to archiving and bookkeeping, on Croatian taxpayers.
In tandem with the arrangement in many other European countries, Croatia is stiving to follow a two-tiered methodology as part of its project approach: the first phase will cover e-invoicing requirements, and the second will implement Digital Reporting Requirements (DRRs) on Croatian taxpayers. This is likely to have been influenced by the VAT in the Digital Age (ViDA) proposal, which imposes reporting requirements on EU Member States for cross-border transactions by January 2028, in line with current timeframes. Croatia is likely to follow a decentralised e-invoicing model, where tax authorities outsource the clearance process to third parties, who are typically accredited service providers.
Croatia already has a solid business-to-government (B2G) platform in place, and the government is likely to borrow heavily, if not integrate, proposed business-to-business (B2B) plans with existing infrastructure. Plans are not yet set in stone, but PEPPOL is likely to be touted as an alternative feasible option for the processing of B2B invoices when obligations come into effect.
With ViDA no doubt a key instigator for Croatia’s plans, attention will also turn to Croatia’s e-invoicing standard. ViDA plans are pitched towards promoting a common e-invoicing standard- the EN 16931, and currently, Croatia’s local VAT requirements do not adhere to the EN 16931 format. This may trigger the need for a revised e-invoicing standard in the country.
To manage the roll-out, current proposals indicate that the Croatian government will advocate phased implementation, and there may be associated real-time reporting obligations in addition to e-invoicing responsibilities, but finer details relating to this still need to be confirmed.
It is clear that there is still work to be done in terms of Croatia’s plans, and the project is very much work in progress, but the intent to solidify e-invoicing as part of the country’s fiscal framework is evident. Obligations associated with the Fiscalisation 2.0 project are expected to become effective from the end of 2024.
Croatia is a compliant territory for Kofax and we are closely following developments in the country, with a view to confirming our position in the upcoming project.