Updated on: Apr 24th, 2023
6 min read
Zakat, Tax and Customs Authority (ZATCA) announced the targeted taxpayers in the third wave to implement phase 2 Saudi Arabia e-invoicing. It clarified that the Value Added Tax (VAT) registered taxpayers whose turnover was more than SAR 250 million and less than SAR 500 million during 2021 or 2022 would fall under wave 3 of phase 2 (integration phase).
Hence, wave 3 applicable taxpayers should start integrating their e-invoicing solutions with the Fatoora portal from 1st October 2023.
ZATCA stated that phase 2 requires additional requirements such as:
ZATCA announced they would implement phase two of e-invoicing in waves by informing the applicable taxpayers at least six months before the integration date.
Accordingly, till now, ZATCA notified the below waves:
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 phase 1 (generation phase) of e-invoicing.
As per ZATCA, Phase 1 of Saudi Arabia’s e-invoicing achieved positive results. It raised the level of consumer protection in the country, and the authority witnessed great awareness among 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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