Croatia’s Fiscalization 2.0 project marks the official launch of a nationwide effort to modernize digital invoicing, archiving and accounting, with full implementation expected by early 2026. This reform introduces a major shift in how businesses issue and receive invoices and it calls for careful preparation, especially for companies operating on platforms like SAP. In this article, we at vAIsko, have summarized some of the major changes for SAP users, as well as key rollout dates and governmental requirements that might be handy for your business to consider while preparing.
Under the new system, e-invoicing will become mandatory for all VAT-registered businesses for domestic B2B transactions. However, B2C transactions will also be impacted, regardless of the payment method used. Although issuing structured e‑invoices is not required for B2C sales, which can remain traditional fiscal receipts, they still must be reported instantly to the fiscal system. For this reason, you will still need fiscal-grade digital certificates and compliant POS/invoicing systems to transmit the required data securely and in real time.
While the rules clearly cover Croatia‑established VAT businesses, the situation for foreign VAT‑registered companies faces changes too. It has been noted that the B2B mandate applies to established companies or with a fixed‑establishment in Croatia and that non‑established foreign VAT‑registered taxpayers are not in scope for issuing e‑invoices for now. If you have a permanent establishment in Croatia (e.g. branch office, warehouse, staff) - you are in scope. If not established, you need to prepare systems that can receive e‑invoices in EN‑16931-XML via AS4 or Peppol. In addition, make sure you follow the official tax authorities’ guidelines, as they keep revealing more details on the scope in the future.
The implementation timeline, starting from 1st September 2025 has enabled access to the testing environment with the new Fiscalization Act entering into force. Companies can test key functionalities such as e-invoice exchange, fiscal signing and electronic reporting, in order to adapt easily by the official launch. On 1st January 2026, the obligation of issuance and receipt of structured e-invoices for all VAT-registered companies becomes mandatory, being applicable for sole traders, self-employed entities and administration bodies as well. E-invoices must comply with the EU standard EN 16931 and will be exchanged in real time with Croatia’s Tax Administration system. On 1st January 2027, the requirement is to expand to all business entities, even if not VAT-registered.
SAP customers in Croatia will surely need to integrate their SAP system with the Croatian fiscalization platform, ensuring digital signatures and archiving are compliant, as well as all generated XML invoices are aligned with EN 16931. For this purpose, the Document and Reporting Compliance (DRC) module in SAP S/4HANA makes it easy to generate and transmit legally compliant e-invoices. For older systems, invoice data may be exported via IDocs or APIs to third-party tools or directly to the Croatian platform. One of the challenges that emerge is therefore, the technical configuration of the DRC setup.
The Croatian system will include a taxpayer portal (FiskApp), an invoice registry, and certificate-based authentication. Proper master data and digital readiness will be critical and CFOs and finance leaders should demand high quality standards, in order to make the transition smooth for their team. If interested to learn more about Master Data Quality and how vAIsko can save you the effort, do not hesitate to reach out or read our previous article here.
Beyond the technical integration, CFOs and finance leaders must also consider deeper changes. The move to e-invoicing introduces real-time tax reporting and automated validation processes, requiring faster and more accurate data flows between systems. This will bring changes to both accounts payable and receivable workflows, making it essential to review and potentially redesign internal processes to ensure they align with the new digital framework. Companies will also need to strengthen their data governance policies to guarantee the secure transmission and long-term storage of digital documents.
As a SAP customer, start by assessing your system landscape, confirming which SAP components will be used for e-invoicing. This way, avoiding miscommunication between the Finance and IT teams guarantees everyone starts on the same page. This initial step will also make it easier to map invoice processes by identifying billing data flows and what needs to be converted. In addition, considering a SAP training programme for your team on the new changes and configurations is crucial, as your finance and compliance teams need to truly understand the new process, in order to avoid mistakes that can lead to fines. Last but not least, keep track of the legal requirements. Every new law goes through changes before it settles, especially when it concerns technical specifications and certification needs.
If you wish to start on time, reach out and we will take it over for your business.
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Our expertise lies in SAP FICO for financial management and SAP RE-FX for real estate and asset management, empowering companies to streamline operations, improve financial efficiency, and ensure compliance with standards like IFRS 16.
