ZATCA Sets Criteria for Wave 9 Taxpayers in E-Invoicing Integration Phase



The Zakat, Tax, and Customs Authority (ZATCA) has defined the selection criteria for taxpayers included in the ninth wave of the E-Invoicing Integration Phase. This wave targets all taxpayers whose VAT-liable revenues exceeded 30 million Saudi Riyals during 2021 or 2022. ZATCA will notify the concerned taxpayers to integrate their e-invoicing systems with the FATOORA platform starting June 1, 2024.

This move to Phase Two, also known as the Integration Phase, introduces additional requirements compared to Phase One (Generation Phase). Key among these requirements is the integration of e-invoicing solutions with the FATOORA platform, issuing e-invoices in a specified format, and incorporating additional fields into the invoices. The implementation of Phase Two will occur in waves, with ZATCA committing to informing the subsequent groups at least six months before their integration date.

The launch of Phase Two signifies a pivotal step in the Kingdom's economic development and digital transformation efforts. It builds on the successful implementation of Phase One, which commenced on December 4, 2021. Phase One marked a significant shift from handwritten or basic computer-generated invoices to a more standardized e-invoicing system that includes necessary fields like QR codes.

ZATCA highlights the positive outcomes of the initial phase, notably enhancing consumer protection in Saudi Arabia. The authority also commends the taxpayers' awareness and prompt adaptation to the e-invoicing requirements.

Phase One mandated the cessation of traditional invoice generation methods, urging taxpayers to adopt e-invoicing solutions that meet ZATCA's standards, including the generation and storage of e-invoices with all required fields.

This initiative reflects Saudi Arabia's commitment to advancing its digital infrastructure, ensuring efficient tax collection, and fostering a more transparent and regulated economic environment.