ZATCA Announces Criteria for Targeted Taxpayers in Wave 15 of E-invoicing "Integration Phase"
The Zakat, Tax and Customs Authority (ZATCA) has outlined the criteria for selecting taxpayers for the Fifteenth Wave of the "Integration Phase" in its E-invoicing initiative. This wave targets taxpayers whose VAT-liable revenues exceeded SAR 4 million during 2022 or 2023.
ZATCA has stated that all taxpayers in this category will receive notifications to integrate their E-invoicing systems with the Fatoora platform by March 1, 2025.
Phase Two of E-invoicing, known as the Integration Phase, imposes more stringent requirements compared to Phase One, the Generation Phase. Key requirements include integrating E-invoicing solutions with ZATCA’s Fatoora platform, issuing E-invoices in a specified format, and adding additional fields to the invoices. The Integration Phase is being implemented gradually through a series of waves, with each wave being notified at least six months before its integration deadline.
The launch of Phase Two is part of Saudi Arabia’s broader economic development and digital transformation strategy. ZATCA highlighted the success of Phase One, which began on December 4, 2021, by enhancing consumer protection and streamlining tax processes. Phase One required taxpayers to stop using handwritten or text editor-generated invoices and implement E-invoicing solutions that meet specific technical standards, including the inclusion of QR codes and other mandatory fields.
ZATCA commended taxpayers for their quick adaptation to the requirements of Phase One, underscoring the project's positive impact on the Kingdom's tax landscape.
