Saudi Arabia Regulatory Updates September 2024

ZATCA Announces Criteria for Wave 15 of E-Invoicing Integration

The Zakat, Tax and Customs Authority (ZATCA) has established the criteria for selecting taxpayers for the fifteenth wave of the E-Invoicing "Integration Phase." This wave targets all taxpayers whose VAT-liable revenues exceeded SAR 4 million during 2022 or 2023. ZATCA has announced that these selected taxpayers will need to integrate their E-Invoicing systems with the (Fatoora) Platform starting from March 1, 2025.

Phase Two, known as the Integration Phase, involves more complex requirements than Phase One, which was focused on invoice generation. Taxpayers in this phase must ensure their E-Invoicing solutions are integrated with ZATCA’s platform, comply with specific invoice formats, and include additional mandatory fields. ZATCA will continue to roll out the Integration Phase in waves, notifying future waves at least six months in advance.

This move is part of Saudi Arabia’s broader economic and digital transformation efforts, building on the success of the initial phase, which was launched in December 2021. The first phase of E-Invoicing resulted in significant improvements, particularly in enhancing consumer protection across the Kingdom. ZATCA commends taxpayers for their awareness and quick adoption during the Generation Phase and anticipates continued success as the E-Invoicing initiative progresses.