Consultation on proposals for: return deadlines; e-invoicing; reverse charge
The Croatian Ministry of Finance has opened a public consultation on a new package of VAT Act amendments. These reforms are designed to simplify compliance obligations, reduce administrative burdens, and prepare for
Once the consultation closes on 18 October 2025, the Ministry of Finance will review stakeholder input and prepare the final draft amendments. These will then be submitted to parliament. If adopted, the reforms will come into effect on 1 January 2026.
The proposed amendments to the VAT Act include several significant changes:
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Extended filing deadlines
VAT returns, recapitulative statements (EU Sales List and EU Acquisition List), and reports on imports destined for another Member State would now be due on the last day of the month following the tax period. This gives businesses more time to compile and file accurate information.
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Simplified reporting obligations
Withdrawing the following reporting:
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the Book of Incoming Invoices
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the Report on supplies subject to the domestic reverse charge.
This should cut down on paperwork for companies and reduce duplication of information already available to tax authorities.
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E-invoicing becomes default 2026
From 2026, e-invoicing will be mandatory for domestic B2B supplies. This also means that suppliers will no longer need to obtain the customer’s consent before issuing an electronic invoice.
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Changes for money exchange services
The obligation to issue invoices for currency exchange services in Croatia will be removed, recognising the limited practical value of this requirement.
Background: Croatia’s VAT System
Read more in our Croat VAT guide.
Croatia applies a value added tax (VAT) regime consistent with EU law, as it is bound by the EU VAT Directive. The current standard VAT rate is 25%, one of the highest in the EU, with reduced rates of 13% and 5% applying to certain goods and services such as food, medicines, books, and utilities.
VAT is governed by the Croatian VAT Act (Zakon o porezu na dodanu vrijednost), which sets out rules on taxable transactions, place of supply, exemptions, invoicing, reporting, and compliance. The system is administered by the Croatian Tax Administration (Porezna uprava), part of the Ministry of Finance.
In recent years, Croatia has moved steadily toward greater digitalisation of tax compliance, in line with trends across the EU. E-invoicing for B2G (business-to-government) transactions is already in place, and the proposed 2026 mandate for B2B e-invoicing represents the next stage in this process.
By extending deadlines, abolishing duplicative reports, and introducing mandatory e-invoicing, Croatia is seeking to simplify VAT compliance while ensuring greater transparency and efficiency in the collection of tax revenues.
