Croatia: KPD 2025 Classification Codes Updated

Croatia has amended its Classification of Products by Activities (KPD 2025), with changes taking effect on January 1, 2027. Businesses issuing electronic invoices must use the correct six-digit product and service codes. The update affects invoice data, product classification and software configurations under Fiscalization 2.0. 

On October 29, 2026, the Croatian Tax Authority announced changes to the Classification of Products by Activities (KPD 2025), which will become applicable on January 1, 2027.

The amendments were officially published in the Croatian Official Gazette No. 119/2026 on October 19, 2026, through the Decision Amending and Supplementing the Classification of Products by Activities of the Republic of Croatia 2025.

The changes include the introduction of new classification codes, the deletion of existing codes and modifications to product and service descriptions.

For businesses issuing electronic invoices under Croatia's Fiscalization 2.0 framework, the amendments mean that the classification codes assigned to goods and services must comply with the updated KPD 2025 classification from January 1, 2027.

This is an update to the existing product classification requirements, not the introduction of a new e-Invoicing obligation.

KPD 2025 is Croatia's national Classification of Products by Activities, maintained by the Croatian Bureau of Statistics. It provides standardised codes for identifying different categories of goods and services.

Under Article 42 of the Fiscalization Act (Official Gazette No. 89/2025), businesses subject to the e-Invoicing requirements must assign the appropriate KPD classification code to each relevant invoice line.

The code must be presented as a six-digit numerical classification identifier.

The KPD code identifies the category of the goods or services supplied. It is not a product barcode, an internal stock-keeping unit (SKU) or a VAT rate code.

The amendments modify selected entries within the KPD 2025 classification rather than replacing the entire classification system.

According to the official decision, the changes involve three types of adjustments:

• New classification codes: Additional codes are introduced for certain products or services.
• Deleted classification codes: Some existing codes are removed and must no longer be used under the updated classification.
• Modified descriptions: Certain product and service descriptions are revised, while their classification codes remain unchanged.

For example, the classification introduces code 06.10.10 for crude petroleum and oils obtained from bituminous minerals, while codes 06.10.11 and 06.10.12 are deleted.

Similarly, certain wood-related classification codes are removed and replaced with newly introduced categories.

Other amendments affect descriptions relating to fresh fruit, pasta products, fermented beverages, travel bags, petroleum products and various industrial goods.

Not every modification requires assigning a different code. Where only the description changes, businesses should verify that the existing code remains appropriate for the product or service concerned.

The Croatian Tax Authority has published a comparison table identifying the affected codes, their previous descriptions and the classifications applicable from January 1, 2027.

From January 1, 2027, businesses required to issue e-Invoices must use the updated KPD codes when classifying invoice line items.

For retailers, the practical process begins with assigning classification codes to the goods and services maintained in their product records.

When a domestic B2B transaction requires an e-Invoice, the invoicing system must include the applicable six-digit KPD code for each relevant item.

If a previously assigned code has been deleted, the business must identify the appropriate replacement classification before issuing invoices under the updated rules.

Where product descriptions have changed, businesses should review their existing mappings to ensure that the classification still accurately reflects the goods or services supplied.

The new decision does not establish a separate requirement to display KPD codes on ordinary B2C fiscal receipts. The obligation discussed here concerns structured e-Invoices under Croatia's Fiscalization 2.0 framework.

Impact on retailers, POS and e-Invoicing software providers

The changes are particularly relevant for retailers, retail chains, e-Invoicing providers, ERP software vendors and POS providers whose systems generate data for domestic B2B invoices.

Businesses maintaining extensive product catalogues may need to review whether their existing KPD mappings contain codes that will be deleted or modified.

For software providers, the updated classification may require changes to product master data, classification tables and the information transferred between POS, ERP and E-Invoicing systems.

Where e-Invoices are generated directly from a POS System, the updated codes must be available during invoice creation.

Where invoices are generated through a separate ERP or e-Invoicing solution, businesses should ensure that the correct classification information is transferred between the systems.

The update is particularly relevant because Croatia's e-Invoicing obligations will expand on January 1, 2027. From that date, taxpayers outside the VAT system that were generally required only to receive E-Invoices during 2026 will also become subject to the obligation to issue them.

These businesses will therefore need to prepare their product and service classifications using the updated KPD 2025 codes.

What should businesses do?

Businesses issuing e-Invoices should compare their current product and service classifications with the official list of amendments published by the Croatian Tax Authority.

Particular attention should be given to deleted codes, newly introduced classifications and product descriptions that may affect existing mappings.

Retailers and software providers should coordinate the necessary updates before January 1, 2027, to ensure that e-Invoices generated after that date contain valid classification information.

From a fiscalization compliance perspective, the main requirement remains unchanged: each applicable e-Invoice line must contain the correct six-digit KPD code. What changes is the classification that businesses must use to satisfy that requirement.

The main source is the Decision on Amendments and Supplementation to the Decision on the Classification of Products by Activities of the Republic of Croatia 2025 – KPD 2025 - Source

Ivana Picajkić Medior Legal Consultant Linkedin profile