Readiness of Croatian SMEs for mandatory e-invoicing from 2026: digital preparedness and implementation challenges

Abstract

The paper has examined the readiness of Croatian small and medium-sized enterprises (SMEs) for the mandatory implementation of electronic invoicing (e-Invoice) as of January 1, 2026. The study sought to evaluate the degree of digital readiness within small and medium-sized enterprises and to identify the primary obstacles impeding effective adoption of digital technologies. Additionally, the role of Enterprise Resource Planning (ERP) systems analyses in facilitating compliance with the new regulatory requirements has been done. A hybrid method approach was utilized meaning that quantitative survey data with qualitative interviews has been done among representatives of SMEs across in various sectors. The analysis showed that only 40% of Croatian business entities used e-Invoices, with adoption rates significantly higher among medium and large enterprises (75%) compared to small businesses (61%) and micro-enterprises (below 30%). This was expected since prior to 2026 only the B2G market segment had mandatory e-Invoice usage. The main challenges which were identified included financial constraints, technical complexity, limited digital skills among staff, and difficulties integrating e-Invoice functionalities within existing ERP solutions. The study identified the most widespread ERP systems in Croatia—such as Pantheon, Minimax, Synesis, and Odoo. It also highlighted an increasing trend toward cloud-based solutions that offered easier implementation and legislative compliance. The findings of survey also showed that successful e-Invoice adoption required comprehensive preparation, including ERP system optimization, targeted education and investments in digital infrastructure. The research can be used to detect recommendations for SMEs, ERP vendors, and policymakers to support as easy as possible transition to mandatory e-Invoicing. These insights can contribute to the broader guidelines of digital transformation in Croatia together with a foundation for benchmarking readiness and identifying areas for targeted support. Finnaly, paper also discussed implications for next research, emphasizing the importance of continuous monitoring and adaptation as the regulatory and especially technological landscape continues to evolve.