ZATCA Subsidy for e-Invoicing Software Solutions

Saudi Arabian tax authority Zakat, Tax and Customs Authority (ZATCA) implement e-invoicing in phases. ZATCA implemented phase 1 on 4th December 2021 and phase 2 in waves from 1st January 2023. Further, ZATCA clarified that it categorises the phase 2 e-invoicing applicable taxpayers and notifies them six months before their wave.

Accordingly, it announced the below waves:

• Wave 1 under phase 2: Saudi Value Added Tax (VAT) registered taxpayers with more than 3 billion SAR turnover for the year ending 2021 fall under wave 1 from 1st January 2023.
• Wave 2 under phase 2: VAT-registered businesses in Saudi having more than SAR 500 million and less than SAR 3 billion in 2021 fall under wave 2 from 1st July 2023.
• Wave 3 under phase 2: Taxpayers in Saudi have a turnover of more than SAR 250 million, and less than SAR 500 million in 2021 or 2022 falls under Wave 3 from 1st October 2023.
• Wave 4 under phase 2: Saud businesses having a turnover of more than SAR 150 million and less than SAR 250 million in 2021 or 2022 fall under wave 4 from 1st November 2023.
• Wave 5 under phase 2: Businesses registered under KSA VAT having a turnover of more than SAR 100 million during 2021 or 2022 fall under wave 5 from 1st December 2023.

Hence, the e-invoicing applicable businesses shall check their wave and integrate the ERP/POS with ZATCA within specified timelines to comply with the phase.

What is ZATCA subsidy for e-invoicing software solutions?

ZATCA plans for a successful e-invoicing implementation in the Kingdom of Saudi Arabia (KSA). Accordingly, it launched many initiatives to increase awareness among businesses.

Further, it noticed that corporates and large businesses could afford to adopt solutions for implementing e-invoicing in Saudi. However, it is different with small businesses. Hence, ZATCA launched a subsidy program for small taxpayers.

This subsidy scheme applies to VAT-registered businesses having a turnover of up to SAR 3 million. ZATCA stated that this subsidy would help small taxpayers to recover the cost of e-invoicing software.

Currently, the businesses can not avail of the subsidy benefits as the e-invoicing is applicable for SAR 100 million. However, small businesses can avail of this subsidy in future.

How to claim the subsidy for e-invoicing solutions in Saudi?

You need to follow the below steps to claim the subsidy:

Step 1: Log in to the taxpayer’s portal. 

Step 2: Click the “E-Invoicing subsidy request” icon and fill out the subsidy form.

Step 3: You must furnish the purchase details such as invoice amount, invoice number, purchase date, name of the e-invoicing solution provider etc.

Step 4: Attach a copy of the e-invoicing solution invoice and a sample invoice generated from it.