Advancing Digital Transformation: Saudi Arabia Moves Forward with Wave 11 of E-Invoicing Integration

Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) has recently outlined the selection criteria for businesses included in the 11th wave of the e-invoicing integration phase. This significant development forms part of the broader economic and digital transformation initiatives across the Kingdom, aiming to enhance compliance and consumer protection.

The eleventh-wave selection criteria

As part of the ongoing rollout of e-invoicing systems, ZATCA has specified that the eleventh wave will target taxpayers whose VAT-liable revenues exceeded 15 million Saudi Riyals during 2022 or 2023. This selection criterion is set to ensure a seamless transition into the more advanced stages of digital invoicing under the FATOORA platform.

From November 1, 2024, all designated taxpayers will be required to integrate their e-invoicing solutions with ZATCA's FATOORA platform. The Integration Phase (Phase Two) mandates a specific format for e-invoices, which includes additional fields beyond those required in the Generation Phase (Phase One), which began on December 4, 2021.

The Integration Phase aims not only to standardize e-invoicing practices across the Kingdom but also to secure and streamline VAT transactions, thereby reducing errors and enhancing transparency in business operations.

Impact on Business

The shift to a fully integrated e-invoicing system is expected to bring several benefits for businesses and consumers alike. It simplifies the tax filing process, reduces administrative burdens, and increases the accuracy of financial records. Moreover, the heightened level of data integrity and accessibility is likely to improve overall consumer trust and compliance with VAT regulations.

ZATCA’s phased e-invoicing implementation reflects Saudi Arabia's commitment to its Vision 2030 goals of digital transformation and economic diversification. The successful execution of the Generation Phase and the planned progression into the Integration Phase underscore the Kingdom’s dedication to fostering a digitally empowered economy.

The advancement into the eleventh wave of e-invoicing integration marks a pivotal step in Saudi Arabia's journey toward comprehensive digital transformation. Businesses are encouraged to align their systems with the FATOORA platform to meet the new regulatory requirements and to benefit from the improved operational efficiencies it brings.