Latest Updates & Amendments in ZATCA e-Invoicing (Fatoorah) in Saudi Arabia

The Zakat, Tax and Customs Authority (ZATCA or Authority) (earlier known as GAZT) is the tax regulating Authority in Saudi Arabia (SA). In 2021, ZATCA announced implementing e-invoicing in two phases. Accordingly, it implemented phase 1 of e-invoicing from 4th December 2021. After that, ZATCA is set to implement phase 2 of e-invoicing from 1st January 2023. 

This article provides the latest ZATCA updates on e-invoicing (Fatoorah).

ZATCA updates on Fatoorah (e-invoicing)

23rd August 2023

ZATCA notified the eighth wave under phase 2 of Saudi e-invoicing. Accordingly, businesses in KSA registered under VAT with more than SAR 40 million during 2021 or 2022 fall under wave 8 under phase 2. They must integrate their ERP/POS with ZATCA's Fatoora portal starting 1st March 2024.

28th July 2023

ZATCA notified the seventh wave under phase 2 of Saudi e-invoicing. It stated that businesses registered undder KSA VAT with more than SAR 50 million during 2021 or 2022 fall under wave 7 under phase 2. They must integrate their ERP/POS with ZATCA's Fatoora portal starting 1st February 2024.

Click here to know more.

25th July 2023

ZATCA has extended the "Cancellation of Fines and Exemption of Penalties initiative" until 31st December 2023. Further, it clarified that the exemption continues for the same penalties mentioned in the previous decision.

Previously, ZATCA extended the initiative till 31 May 2023 to help taxpayers reduce the burden of the COVID-19 pandemic.

16th June 2023

ZATCA notified the sixth wave under phase 2 of Saudi Arabi e-invoicing. It stated that KSA VAT registered businesses having more than SAR 70 million during 2021 or 2022 fall under wave 6 under phase 2 of e-invoicing. They must integrate their ERP/POS with ZATCA's Fatoora portal starting 1st January 2024.

Click here to know more.

26th May 2023

ZATCA announces wave 5 under phase 2

ZATCA announced wave 5 under phase 2 of e-invoicing in Saudi Arabia. It stated that businesses registered under KSA VAT having a turnover of more than SAR 100 million during 2021 or 2022 fall under wave 5 under the integration phase of e-invoicing. The applicable businesses must integrate their ERP/POS with the Fatoora portal starting 1st December 2023.

Click here to learn more about this update.

28th April 2023

ZATCA announces wave 4 under phase 2

ZATCA announced the fourth wave under phase 2 of Saudi e-invoicing. It stated that VAT-registered businesses in Saudi whose turnover is more than SAR 150 million and less than SAR 250 million during 2021 or 2022 fall under wave 4 under phase 2 of e-invoicing. They must integrate their ERP/POS with ZATCA's Fatoora portal starting 1st November 2023.

Click here to learn more about this update.

24th March 2023

ZATCA announces wave 3 under phase 2

ZATCA announced the third wave under phase 2 of Saudi Arabia e-invoicing. It stated that businesses whose VAT tunrover is more than SAR 250 million and less than SAR 500 million during 2021 or 2022 fall under wave 3 under phase 2 of e-invoicing. They must integrate their ERP/POS with ZATCA's Fatoora portal starting 1st October 2023.

Click here for more information.

23rd December 2022

ZATCA announces wave 2 under phase 2

ZATCA announced that the businesses in KSA with more than SAR 500 million and less than SAR 3 billion turnover fall under the second targeted group/ wave 2 under phase 2 of e-invoicing. They must integrate their ERP/POS with ZATCA's Fatoora portal starting 1st July 2023.

Visit ZATCA portal for more information.

24th June 2022

ZATCA initiates procedures for implementing phase 2 (Integration phase)

Earlier, ZATCA clarified that phase 2 would be implemented in waves by dividing taxpayers into targeted taxpayer groups and will notify them six months before their wave. Accordingly, it announced that the first wave of phase 2 applies to Value Added Tax (VAT) registered taxpayers whose revenue exceeded 3 billion SAR for the year ending 2021.

Also, ZATCA stated that Phase 2 (Integration Phase) requires additional requirements to integrate the taxpayer e-invoicing solutions with the Fatoora portal.

Here’s the complete update on Phase 2.

4th December 2021

Phase 1 of e-invoicing enters into force

ZATCA announced that the first phase of e-invoicing (Generation Phase) would be effective on 4th December 2021. The first phase applies to all VAT-registered taxpayers and other parties issuing tax invoices on behalf of the taxable supplier. However, taxpayers not residing in Saudi Arabia were kept out of the scope of e-invoicing.

Click here to read more about this update.

16th November 2021

ZATCA releases the violations and fines related to e-invoicing

ZATCA (Authority) announced the violations and fines under phase 1 of e-invoicing, starting on 4th December 2021. The violation of not issuing electronic invoices begins with a fine of SAR 5,000, while the following violations start with giving a warning:

• Not adding the QR Code in the simplified tax invoice
• Not mentioning the VAT registration number on the tax invoice
• Failure to notify the Authority of any malfunction that hinders issuing e-invoices

Also, ZATCA clarified the violation of amending or deleting e-invoices after issuance attracts a fine of SAR 1,000. 

It is important to note that all fines are applied based on the type of violation and the number of repetitions.

Click here to read more on e-invoicing violations and fines.

04th November 2021

30 days left to comply with phase 1 of Saudi Arabia e-invoicing

ZATCA reminded taxpayers to speed up the necessary arrangements to comply with the phase 1 requirements, which has 30 days remaining for the implementation date, i.e., 04th December 2021.

Click here to read more about this update.

05th September 2021

90 days Left for the enforcement of phase 1, i.e., Generation phase

The Authority urged the taxpayers to start with the necessary preparations to comply with the Phase 1 requirements as e-invoicing (Fatoorah) implementation will begin in 90 days. 

Click here to read more about this update.

24th August 2021

ZATCA launches e-invoicing (Fatoorah) project

ZATCA launched the ‘Fatoora’ project on 24th August 2021 in the presence of the Governors of the ZATCA, Digital Government Authority, Governor of the General Authority for Small and Medium Enterprises (Monsha’at) and the CEO of The National Anti-Commercial Concealment Program. Also, the e-invoicing solution providers were present in the meeting.

ZATCA Governor stressed that the e-invoicing (Fatoora) project is one of the most important and ambitious national projects led by the Authority. This initiative is an extension of various digital projects that Saudi initiated recently to achieve the ambitious digital transformation goals mentioned in the Kingdom’s Vision 2030.

Click here to read more about the launch of the Fatoorah project.