Croatie

Fiscalization 2.0 – new system for cashless payments Croatia’s e-invoicing drive has, to some extent, been overshadowed by its neighbouring countries, where plans for mandate implementations are developing with some speed. However, this month has marked a significant step in the digitisation of Croatia’s fiscal procedures, specifically with respect to e-reporting.    The Croatian Tax Administration launched a new project referred to as Fiscalization 2.0, which will focus on the implementation of an e-reporting system for cashless transactions with an integrated e-Archive and advanced online bookkeeping system. This project will potentially impact the current e-invoicing, e-archiving and e-bookkeeping obligations in the country.   For more information on the Fiscalization 2.0 project, you can refer to the publication available on the website of the Minister of Finance:    https://www.porezna-uprava.hr/HR_projekti/Stranice/Fiskalizacija_2.0.aspx   

Local currency change Croatia’s local currency is transitioning from the Croatian Kuna to the Euro, effective 1 January 2023.   Tungsten’s Product and Development teams have facilitated the option to utilise the Euro currency from 1 January 2023, while also retaining the ability to select the Kuna currency when required (for example, for ‘late’ invoices, or debit and credit notes where the original invoice dated is dated prior to 1 January 2023).   Tungsten is communicating with our Croatian suppliers and buyers regarding the change.  

VAT reduction on specific supplies Croatia is following the overwhelming trend both in Europe and beyond to reduce VAT rates on specific supplies. These aim to lower the tax burden on Croat citizens – which is unsurprising given the current inflation, culminating in rising living costs. The Act on amendment of the Act on the Value Added Tax was published in the official Gazette, No. 39/2022 on 30 March 2022. The amendments provide a detailed oversight of the main changes outlined by the Croatian government; these can be summarised as follows:

• Reduced rate of 5% applicable to cinema tickets, certain foodstuffs, fertilisers and pesticides
• Extension of the 13% VAT rate for natural gas from CN 2711 11 00 and CN 2711 21 00 and heating from heat stations, including fees related to these deliveries, regardless of who the delivery is made to.

Tungsten Network supports all valid VAT tax rates in Croatia.