Invoicing and Tax regulation in Croatia
Invoicing Regulation in Croatia
In Croatia, the law on the Obligations and Rights of Accountants requires businesses to provide invoices for all transactions. This is mandatory for all B2B, B2C, and B2G operations. It is important to adhere to these regulations to avoid penalties for non-compliance.
Real-Time Reporting / Fiscalization in Croatia
The Croatian Government mandates real-time reporting for all business transactions. Both B2B, B2C, and B2G are required to integrate their Point of Sale (POS) systems with the Central Fiscalization server. This integration allows the immediate transfer of receipts data to the Tax Administration.
E-Invoicing in Croatia
E-invoicing is not yet mandatory in Croatia, but its usage is increasing due to its efficiency and eco friendliness. B2B, B2C, and B2G operations can benefit from switching to e-invoicing due to faster transaction times and reduced physical paperwork.
VAT/GST/Tax Compliance in Croatia
The standard VAT rate in Croatia is 25%, which applies to most goods and services. However, reduced rates of 13% and 5% exist for certain items. Businesses are required to be VAT compliant, and this applies to B2B, B2C, and B2G transactions. Businesses should register for VAT and regularly submit VAT returns. Failure to adhere can result in heavy fines from the Croatian Tax Administration.
Despite adopting the EUR, the prices in Croatian invoices are often expressed in both EUR and Croatian Kuna (HRK) due to the fixed conversion rate of 7.5345.