Croatia: Fiscalization of E-Invoices Issued in Foreign Currency

Croatia’s Tax Authority has clarified how e-Invoices issued in foreign currencies must be handled under the fiscalization system.

Although an invoice may commercially be agreed in a foreign currency, such as US dollars, the Croatian e-Invoice sent for fiscalization can contain only one currency. Because the fiscalization rules apply to domestic transactions, all amounts reported in the e-invoice XML must be expressed in euros.

The foreign-currency amounts must be converted into euros using the middle exchange rate of the Croatian National Bank applicable on the date when the VAT liability arises. The VAT amount must also be stated in euros.

The same rule applies when reporting that an e-Invoice has been paid. The issuer must report paid e-Invoices to the fiscalization system for the previous month, and the collected amount must be submitted in euros, even when the customer made the bank payment in another currency.

In practice, this means that both the fiscalized e-Invoice data and the subsequent payment-status report must contain euro amounts. Two currencies cannot be shown within the same Croatian e-invoice structure.