top of page

Saudi Arabia Regulatory Updates-2 April 2024

Hatice Ozcan

Apr 26, 2024

ZATCA Sets Criteria for 11th Wave of E-Invoicing Integration Phase

The Zakat, Tax, and Customs Authority (ZATCA) has specified the selection criteria for taxpayers involved in the 11th wave of the E-invoicing Integration Phase. This phase targets VAT-registered businesses with annual revenues exceeding 15 million Saudi Riyals during 2022 or 2023. These businesses are required to integrate their e-invoicing systems with ZATCA's FATOORA platform starting November 1, 2024.

ZATCA outlines that this second phase of e-invoicing will introduce more complex requirements than the initial Generation Phase. These include integrating e-invoicing systems to ZATCA’s FATOORA, issuing e-invoices in a specified format, and incorporating additional fields in the invoices. This phase will roll out in stages, with subsequent waves being notified at least six months before their integration date.

The progression to Phase Two reflects ongoing economic development and digital transformation initiatives within the Kingdom, aiming to enhance consumer protection and streamline tax compliance processes. This follows the successful implementation of Phase One, initiated on December 4, 2021, which mandated the transition from traditional invoicing methods to a compliant e-invoicing system that includes specific technological requirements such as QR codes.

bottom of page