{"id":6430,"date":"2026-02-01T00:14:31","date_gmt":"2026-01-31T23:14:31","guid":{"rendered":"https:\/\/netsourcing.hr\/?p=6430"},"modified":"2026-02-05T09:42:43","modified_gmt":"2026-02-05T08:42:43","slug":"e-racun-ubl-profil","status":"publish","type":"post","link":"https:\/\/netsourcing.hr\/en\/e-racun-ubl-profil\/","title":{"rendered":"Pitfalls in issuing eInvoices in the construction sector"},"content":{"rendered":"
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Construction invoices are not \u201cjust paper.\u201d The IRS checks whether they are\u00a0account type<\/span>\u00a0(eInvoice profile) and\u00a0method of service\/work description<\/span> in accordance with the law. If they are not, there will be penalties, and they are not small.<\/p>

In Croatia, eInvoice is used\u00a0UBL profili od P1 do P12 i time postali zakonska obaveza od 1.1.2026<\/strong>.<\/span>\u00a0Svaki profil ozna\u010dava a different situation<\/span>: invoice according to contract, advance payment, situations, delivery of materials, cancellation, etc. If you send an invoice with\u00a0wrong profile,<\/span> e.g. as a \u201ccontract invoice\u201d (P1) when it is actually an \u201cadvance payment\u201d (P4) or a \u201csituation\u201d (P11), the tax authority may assess that the invoice is not in accordance with the law<\/span>\u00a0and impose a sentence.<\/p>

That's why it's important to know\u00a0in which situation which profile to use<\/span>This is a summary for\u00a0construction sector<\/span>.<\/p>\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\r\n \"constructionSite\" <\/div>\r\n \r\n <\/div>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\tP1 \u2013 Invoice per contract and order\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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It is used when\u00a0there is a contract and an order<\/span>\u00a0and works are performed or materials are delivered under that contract. In construction: standard construction works, additional works\u00a0ordered through an order. Payment usually to a transaction account\u00a0(e.g. 30\u201360\u00a0days).\u00a0It\u00a0is the most common and safest choice if you work on a contract basis.<\/span><\/p>\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\tP2 \u2013 Periodic invoicing per contract\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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UBL profile P2<\/strong> used for continuous services<\/strong> which are provided over a certain period and are invoiced monthly, quarterly or according to another predefined billing period<\/strong>, in accordance with the contract.<\/p>

Applies when the service not related to individual situations or phases of work<\/strong>, but is performed continuously throughout the duration of the contract.<\/p>

Application in construction<\/h5>

P2 is most often used for:<\/p>

  • professional supervision<\/strong><\/li>
  • designing<\/strong><\/li>
  • maintenance of facilities<\/strong><\/li>
  • long-term engineering and consulting services<\/li><\/ul>
    Method of payment<\/h5>

    Payment is made upon expiry of the billing period, by deposit into a transaction account, within the deadlines defined in the contract.<\/p>

    Important note<\/h5>

    It is a common mistake to use the P1 profile for these types of services. If the service is continuous and contracted for a period, P2 is the correct and tax-safe choice<\/strong>, because it clearly reflects the true nature of the service.<\/p>\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    \n\t\t\t\t\t\t\tP3 \u2013 Invoice without contract (ad hoc)\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    UBL profile P3<\/strong> is used only in situations where there is no formal contract or order<\/strong>, and the service has been agreed upon orally or ad hoc<\/strong>, most often due to urgency or a smaller scope of work.<\/p>

    When P3 is justified<\/h5>

    P3 is the correct choice when:<\/p>

    • the works were not agreed upon in advance in writing<\/li>
    • it's about minor or emergency procedures<\/strong><\/li>
    • there is no contractual obligation to continue cooperation<\/li>
    • the service is performed once<\/li><\/ul>
      Application in construction<\/h5>

      In practice, P3 is used for:<\/p>

      • emergency repairs<\/strong> (e.g., broken installations, emergency repairs<\/li>
      • smaller private operations<\/strong><\/li>
      • occasional work without contractual documentation<\/li><\/ul>
        Important note (critical for monitoring)<\/h5>

        P3 profile should be used with great caution<\/strong>.
        If there is:<\/p>

        • contract<\/li>
        • order form<\/li>
        • offer accepted by email<\/li>
        • or recurring relationship with the same client<\/li><\/ul>

          \u27a1\ufe0f then P3 does not consider it the correct choice<\/strong>.<\/p>

          In tax supervision, the incorrect application of the P3 profile is often interpreted as an attempt to circumvent the contractual relationship<\/strong>, which may lead to invoice disputes and additional tax liabilities.<\/p>\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          \n\t\t\t\t\t\t\tP4 \u2013 Advance invoice\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          UBL profile P4<\/strong> is used when Payment is made before the start of work.<\/strong>, most often to secure funds for procurement of materials, mobilization of the construction site or covering initial project costs<\/strong>.<\/p>

          When to use P4<\/h5>

          P4 is the correct choice when:<\/p>

          • there is a contract or agreement on advance payment<\/li>
          • works have not yet started or are in the initial phase<\/li>
          • advance represents advance<\/strong>, not the final payment for the service<\/li><\/ul>
            Application in construction<\/h5>

            In construction practice, P4 is used for:<\/p>

            • mobilization of the construction site<\/strong><\/li>
            • advance payment according to the contract<\/strong><\/li>
            • procurement of materials before the start of work<\/li><\/ul>
              Important note<\/h5>

              Advance invoice is not a substitute for situations or final accounts<\/strong>.
              The advance amount must be refuse later<\/strong> through:<\/p>

              • temporary situations (P11)<\/li>
              • or final settlement<\/li><\/ul>

                Incorrectly issuing an advance payment as a standard invoice (e.g. P1) is a common mistake that can lead to tax audits. VAT discrepancies and invoice disputes<\/strong><\/p>\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                \n\t\t\t\t\t\t\tP5 \u2013 Payment on the spot\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Smaller private works, cash or card. In construction\u00a0rarely used<\/span>\u00a0and is not intended for\u00a0more serious construction projects.<\/p>\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                \n\t\t\t\t\t\t\tP6 \u2013 Payment before delivery\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Special or expensive equipment. In construction: e.g. prefabricated elements. Payment before delivery.<\/section>
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                \n\t\t\t\t\t\t\tP7 \u2013 Invoice with shipping note\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Delivery of materials<\/span>\u00a0\u2013 concrete, reinforcement, building materials. A very common profile with suppliers and when you re-invoice an invoice from a supplier.<\/section>
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                \n\t\t\t\t\t\t\tP8 \u2013 Invoice with shipping note and receipt confirmation\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                For\u00a0public contracting authorities<\/span>\u00a0and projects with receipt control. Payment upon receipt confirmation.<\/section>
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                \n\t\t\t\t\t\t\tP9 \u2013 Approval \/ refund\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Return of goods, correction of invoice. In construction: return of materials. Refund or offset.<\/section>
                <\/section><\/section>
                <\/section><\/section>
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                \n\t\t\t\t\t\t\tP10 \u2013 Corrective invoice (cancelled)\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Quantity changes, cost sheet differences. In construction: situation corrections. Corrective calculation.<\/section>
                <\/section><\/section>
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                \n\t\t\t\t\t\t\tP11 \u2013 Partial and final invoicing (situations)\n\t\t\t\t\t<\/h2>\n\n\n\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Temporary situations<\/span>\u00a0and\u00a0final settlement<\/span>. In construction: monthly situations, final situation. Payment per situation.\u00a0For the construction sector, this is one of the most important profiles.<\/span>\u00a0if you invoice based on completed situations.<\/section><\/section>
                When to use P11<\/h5>

                P11 is the correct choice when:<\/p>

                • works are being carried out in stages or over time<\/strong><\/li>
                • calculation is done according to actually performed quantities<\/strong><\/li>
                • there is a contract and\/or cost estimate<\/li>
                • invoicing is done through monthly or other temporary situations<\/strong>, and the final situation<\/li><\/ul>
                  Application in construction<\/h5>

                  In practice, P11 is used for:<\/p>

                  • monthly situations<\/strong><\/li>
                  • temporary (partial) situations<\/strong><\/li>
                  • final situation<\/strong> upon completion of the works<\/li><\/ul>

                    Payment is made for every situation<\/strong>, in accordance with the agreed deadlines.<\/p>

                    Important note<\/h5>

                    For the construction sector, P11 is one of the most important UBL profiles<\/strong>.
                    Using other profiles (e.g. P1) for situations is a common mistake that can lead to the conclusion that tax audits the invoice does not reflect the actual progress of the work<\/strong>.<\/p>

                    If you invoice by completed situations \u2014 P11 is not an option, but an obligation<\/strong>.<\/p><\/section>

                    <\/section><\/section>
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                    How NetSourcing solves the UBL profile problem<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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                    Every service delivery and every work order in NetSourcing is indexed with a KPD tag that is directly linked to
                    with the delivery of goods and services. NetSourcing has an interface for issuing B2C and B2B invoices where B2B invoice items are linked to KPD codes,
                    Work categories and UBL profiles linked through system logic, eliminating the risk of incorrect posting.<\/p>

                    If you want to be sure that your e-Invoices in construction are compliant with the law before the Tax Office checks it
                    administration, it's time for a forward-thinking system.<\/p>\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

                    Most importantly, safety and sustainability remained at the core of our approach. With optimized resource usage and eco-conscious building practices, the industrial park is not only efficient but also environmentally responsible.<\/p>","protected":false},"author":107343793,"featured_media":6447,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"link","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[5],"tags":[62],"class_list":["post-6430","post","type-post","status-publish","format-link","has-post-thumbnail","hentry","category-financije","tag-financije","post_format-post-format-link"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t