Zakat, Tax and Customs Authority (ZATCA) announced the set of targeted taxpayers in the second wave to implement phase 2 (integration phase) of e-invoicing in Saudi Arabia. It clarified that the Value Added Tax (VAT) registered taxpayers whose turnover was more than SAR 500 million during 2021 would fall under wave 2 of the integration phase.
Hence, wave 2 applicable taxpayers should start integrating their e-invoicing solutions with the Fatoora portal from 1st July 2023. Also, they must complete the integration by 31st December 2023.
ZATCA stated that phase 2 requires additional requirements, and the most important are:
As earlier informed by ZATCA, they would implement phase two of e-invoicing in waves. Also, they would inform the applicable taxpayers about their waves at least six months before the integration date.
Accordingly, ZATCA notified wave 1 under phase 2 in June 2022, stating that the taxpayers whose turnover is more than SAR 3 billion must start integration from 1st January 2023.
ZATCA stated that the integration phase of e-invoicing is an extension of the economic development and digital transformation taking place in Saudi. Also, ZATCA looks at phase 2 as a continuation of the success story that began with the generation phase (phase 1) of e-invoicing.
Phase 1 of e-invoicing in Saudi Arabia achieved positive results; most importantly, it raised the level of consumer protection in the country. Also, the authority witnessed great awareness of taxpayers during the implementation of the generation phase.
ZATCA implemented phase 1 of e-invoicing from 4th December 2021, which obliged all VAT-registered taxpayers to:
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