Fiscalization 2.0: Legal Framework, Digital Transformation, and Effects on Micro and Small Entrepreneurs in the Republic of Croatia

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Ivana Miklošević

1 ,

Ivana Miklošević

1 ,

Affiliations

1. University of Slavonski Brod, Trg I. B. Mažuranić 2, 35000 Slavonski Brod, Croatia

Affiliations

1. University of Slavonski Brod, Trg I. B. Mažuranić 2, 35000 Slavonski Brod, Croatia

Abstract: This paper analyzes the legal, economic, and practical effects of implementing the Fiscalization 2.0 reform in the Republic of Croatia, with a particular focus on micro and small enterprises. The legal framework of Fiscalization 2.0 is defined by the proposed new Fiscalization Act from 2025, which clearly outlines obligations and deadlines for entrepreneurs, aligning national legislation with European standards. However, it simultaneously creates additional regulatory burdens for micro and small enterprises. A qualitative analysis was conducted using semi-structured interviews with a sample of 15 micro and small entrepreneurs operating across various sectors. The primary objective of this research was to identify key challenges, costs, benefits, and institutional support during the implementation of the new fiscalization system based on electronic invoices (e-invoices). The findings indicated the main barriers to digital fiscalization implementation, such as technical system complexity, additional financial costs, and insufficient education and informational support. Concurrently, micro and small entrepreneurs highlighted benefits like increased business transparency, reduced administrative burden, faster invoice processing, and enhanced digital literacy. Despite initial challenges, the long-term potential of the fiscal system's digital transformation is significant, provided that adequate institutional support and timely education for entrepreneurs are ensured.

Keywords: digital transformation, e-invoice, Fiscalization 2.0, qualitative research, micro and small enterprises, Republic of Croatia

Abstract

Summary: This paper analyzes the legal, economic, and practical effects of implementing the Fiscalization 2.0 reform in the Republic of Croatia, with a particular focus on micro and small enterprises. The legal framework of Fiscalization 2.0 is defined by the 2025 Draft Fiscalization Act, which clearly outlines the obligations and deadlines for entrepreneurs, aligning national legislation with European digital standards. However, it simultaneously imposes additional regulatory burdens on smaller businesses. A qualitative analysis was conducted using semistructured interviews with 15 micro and small entrepreneurs operating across various sectors. The primary aim of the research was to identify key implementation challenges, incurred costs, perceived benefits, and the availability of institutional support during the transition to the new digital fiscal system based on electronic invoicing (eInvoices). The findings indicate that the main barriers include the technical complexity of the system, additional financial costs, and insufficient education and informational support. At the same time, entrepreneurs recognize benefits such as increased business transparency, reduced administrative burden, faster invoice processing, and enhanced digital literacy. Despite initial challenges, the long-term potential of digital transformation in the fiscal system is significant—provided that adequate institutional support and timely education are ensured for entrepreneurs.