Riyadh, December 28, 2024 — The Zakat, Tax, and Customs Authority (ZATCA) has officially announced the criteria for selecting taxpayers targeted in the 19th wave of the Integration Phase of the E-invoicing initiative. The selection encompasses establishments whose revenues subject to VAT exceeded SAR 1.75 million in either 2022 or 2023, according to the authority’s press release.
ZATCA has confirmed that all targeted taxpayers in this wave will be notified to ensure the integration of their e-invoicing solutions with the Fatoora platform by September 30, 2025. The Integration Phase, or Phase Two, introduces a set of advanced requirements beyond those of the Generation Phase (Phase One). These include the seamless integration of taxpayers’ e-invoicing systems with ZATCA’s Fatoora platform, the issuance of e-invoices in a standardized format, and the inclusion of additional mandatory fields in the invoices.
To ensure a smooth transition, ZATCA stated that the Integration Phase would be implemented incrementally across multiple waves, with each wave’s participants being notified directly at least six months before their integration deadline. This phased approach is designed to facilitate compliance and streamline the transition for taxpayers.
The authority emphasized that the implementation of Phase Two marks a significant milestone in the Kingdom’s ongoing economic development and digital transformation efforts. It builds upon the achievements of Phase One, which was launched on December 4, 2021. The initial phase required taxpayers to transition away from handwritten invoices or computer-generated invoices created through text editors or spreadsheet software. Instead, taxpayers were mandated to adopt technical solutions for e-invoicing that comply with the E-invoicing Regulation. This included generating and storing invoices with all mandatory fields, such as QR codes, ensuring full compliance with the regulations.
ZATCA highlighted the positive outcomes of Phase One, which notably enhanced consumer protection throughout Saudi Arabia. The authority also lauded the high level of awareness among taxpayers and their proactive response to adopting the E-invoicing initiative. The success of Phase One has laid a strong foundation for Phase Two, which is poised to further elevate the standards of transparency, efficiency, and integration within the Kingdom’s financial ecosystem.
As part of its strategic goals, ZATCA reaffirmed its commitment to supporting taxpayers through each phase of the E-invoicing implementation. It aims to foster a smooth and efficient transition for all targeted establishments, underscoring the broader objectives of advancing the Kingdom’s digital economy and enhancing the overall business environment.