How to issue your first e-invoice (eRačun) as a Croatian sole trader

What is an e-invoice and how does it differ from a PDF?

An e-invoice (eRačun) is a structured electronic invoice (XML following UBL 2.1 and the Croatian CIUS) exchanged between information intermediaries. Unlike a PDF, a computer can read it without retyping, and the invoice data is fiscalized with the Tax Administration. A PDF sent by email is only a readable copy.

The obligation covers invoices you issue to Croatian businesses (B2B). Invoices to individuals are still fiscalized with F1, and invoices to clients outside Croatia are not covered.

Step 1: choose an information intermediary

An information intermediary is an authorized company that sends and receives e-invoices for you and fiscalizes them. The Tax Administration publishes a list of more than 30 intermediaries. When choosing, look at the price, whether the intermediary has an API your invoicing software can use, and the quality of support.

Moj Obrt currently supports ePoslovanje.hr, with Fina and Moj eRačun coming soon. If you already use another intermediary, you don't have to switch: you can import e-invoices issued through it into Moj Obrt from XML (more below).

Step 2: sign a contract with the intermediary

You sign the contract, or accept the general terms, directly with the intermediary you picked. That is your relationship with the intermediary, not with the invoicing software. Moj Obrt is not an information intermediary: we are the technical platform that generates the e-invoice and delivers it to your intermediary with your own API key, a model the Tax Administration allows.

Step 3: authorize the intermediary in FiskAplikacija

In FiskAplikacija, which you reach through ePorezna, confirm your intermediary and grant it permissions. You need to authorize it for e-invoice fiscalization and for e-reporting of payments. Confirming the intermediary for receiving e-invoices does not grant these permissions on its own.

• Confirmation of the intermediary for receiving e-invoices – so your clients can send you invoices.
• Authorization for e-invoice fiscalization – so the intermediary can fiscalize the invoices you issue.
• Authorization for e-reporting – payment data is reported by the 20th day of the month for the previous month, according to the Tax Administration. Check the exact procedure for your case with your intermediary and accountant.

Step 4: prepare your data

• Your business details: OIB, address, business premises and payment device.
• The OIB and address of the clients you issue B2B invoices to – a domestic e-invoice cannot be issued properly without the legal entity's OIB.
• KPD codes (product classification by activity, format XX.XX.XX) for the services and products you sell. If you are unsure which code to use, check with your accountant.

In Moj Obrt you enter the KPD code once, on the item under My items, and it is copied onto every new invoice line. It is only required on invoices that are fiscalized with F2. For all other invoices (for example to individuals or foreign clients), and on the items themselves, you can leave it empty.

Step 5: connect Moj Obrt to your intermediary

1. Register a test user account with ePoslovanje.hr (the test and production environments are separate).
2. In the ePoslovanje.hr web interface, download your API key (My data, the For developers tab).
3. In Moj Obrt, open the Fiscalization page, the F2 (e-invoices) tab, and paste the API key. The app verifies it when you save.
4. For production, repeat the process with your production key – the test and production keys are stored separately.

Step 6: try it in the test environment

Turn on test mode and issue an invoice to a legal entity. Test invoices have a separate number sequence and don't enter your reports, so you can't break anything. Moj Obrt picks F2 for a B2B invoice on its own, generates the e-invoice and sends it to your intermediary.

The invoice will be processing for a while, and Moj Obrt tracks the response and marks the invoice as fiscalized as soon as the confirmation arrives. If fiscalization fails, you'll see the reason and can retry with one click.

Step 7: issue your first real e-invoice

Once the test invoice goes through, turn off test mode, check that the production API key is set and issue your first real invoice. You can follow its status in Moj Obrt and in FiskAplikacija, where your client accepts or rejects their e-invoice.

What if your intermediary isn't supported? Import via XML

If you issue e-invoices through an intermediary Moj Obrt doesn't support yet, you can still keep all your invoices in one place. On the invoices list, import the e-invoice in XML format (UBL) and you'll track revenue, clients and reports just like for invoices issued directly in Moj Obrt.

• Import is meant for invoices issued through other intermediaries that Moj Obrt doesn't (yet) support.
• Imported invoices are only recorded. Moj Obrt does not fiscalize them again, because your intermediary has already fiscalized them.
• Regular invoices in euros issued by your business are supported.

The most common mistakes with a first e-invoice

• The intermediary is confirmed for receiving but not authorized for fiscalization and e-reporting.
• The test API key is set in production (or the other way around).
• The client has no OIB entered, or it is entered incorrectly.
• An invoice line has no KPD code, and the invoice is fiscalized with F2.
• Waiting for the last week of December, so the contract, authorizations and testing all happen at once.

If you only issue the occasional invoice, the Tax Administration's free MIKROeRAČUN app, intended for taxpayers outside the VAT system, may be enough. If you invoice regularly, keep clients and items or send offers too, software that does it all for you is more practical.