Regulatory updates - Croatia

Among the proposed changes, the most relevant are: 

• A new One-Stop Shop (OSS) reporting mechanism for transfers of a business’s own goods between EU countries, effective from July 1, 2028, replacing the current reporting through the Collective Declaration. 

• The OSS regime would be expanded to cover all B2C services supplied in the EU by non-EU service providers. At the same time, businesses applying the special VAT scheme for small businesses would be prevented from using the IOSS. 

• Supplies of electricity, heating, and cooling to persons who are not required to pay VAT on intra-EU acquisitions would be treated as intra-EU distance sales of goods until June 30, 2028. 

• Changes affecting VAT refunds for businesses using OSS and IOSS. In addition, under the new rules, Croatia seeks to define more precisely the EUR 10,000 threshold for intra-EU distance sales, clarifying that the threshold covers only distance sales made from the EU country where the taxable person is established. 

The draft bill is open for public consultation until August 30, 2026.

This draft ordinance provides more detailed regulation regarding the application of the B2C clearance mandate—Fiscalization Act—specifically in the area of “Fiscalization of final consumption invoices”. 

It is expected that the draft will be approved and published in the Croatian Official Gazette before the end of this year, in order to align with the timelines set by the Fiscalization Act.

As part of Pagero and Thomson Reuters’ commitment to customers, we have a solution ready to support this upcoming decentralized CTC model, where both issuers and recipients of e-invoices will be required to report these transactions to the Fiscalization System.

As a reminder, buyers must also report rejections of e-invoices to the Fiscalization System, while sellers are required to report payments to the same system. The upcoming e-invoicing and reporting mandate must be complied with by taxpayers established in Croatia.

Timelines

• January 1, 2026: VAT registered entities must issue and receive e-invoices, plus report issued and received e-invoices
• January 1, 2026: Non-VAT registered entities must receive e-invoices plus report received e-invoices
• January 1, 2027: Non-VAT registered entities must issue e-invoices plus report issued e-invoices