The Zakat, Tax, and Customs Authority (ZATCA) has announced the criteria for selecting taxpayers for the 12th wave of the “Integration Phase” of e-invoicing. This wave targets all taxpayers whose VAT-subject revenues exceeded SAR 10 million in 2022 or 2023.
According to the announcement, these eligible businesses are required to begin integrating their e-invoicing solutions with the Fatoora portal by December 1, 2024. This integration is part of ZATCA’s efforts to streamline tax compliance and enhance digital invoicing capabilities across Saudi Arabia.
Phase 2 additional requirements include:
– Including additional fields in the invoice.
– Integrating the invoicing solution with the Fatoora portal.
– Issuing e-invoices in the ZATCA format.
ZATCA ensures that phase 2 requirements are communicated to applicable businesses at least six months prior to the integration date.
The announced waves under phase 2 are as follows:
Wave 1: VAT-registered businesses in KSA with a turnover of more than SAR 3 billion in 2021 must integrate with Fatoora from January 1, 2023.
Wave 2: KSA VAT-registered businesses with a turnover between SAR 500 million and SAR 3 billion in 2021 must integrate starting July 1, 2023.
Wave 3: KSA VAT-registered businesses with a turnover between SAR 250 million and SAR 500 million in 2021 or 2022 must integrate from October 1, 2023.
Wave 4: Saudi VAT-registered businesses with a turnover between SAR 150 million and SAR 250 million in 2021 or 2022 must integrate starting November 1, 2023.
Wave 5: VAT-registered businesses in KSA with a turnover between SAR 100 million and SAR 150 million in 2021 or 2022 must integrate from December 1, 2023.
Wave 6: Saudi VAT-registered businesses with a turnover between SAR 70 million and SAR 100 million in 2021 or 2022 must integrate by January 1, 2024.
Wave 7: KSA VAT-registered businesses with a turnover between SAR 50 million and SAR 70 million in 2021 or 2022 must integrate by February 1, 2024.
Wave 8: Saudi VAT-registered businesses with a turnover between SAR 40 million and SAR 50 million in 2021 or 2022 must integrate by March 1, 2024.
Wave 9: KSA VAT-registered businesses with a turnover between SAR 30 million and SAR 40 million in 2021 or 2022 must integrate by April 1, 2024.
Wave 10: KSA VAT-registered businesses with a turnover between SAR 25 million and SAR 30 million in 2022 or 2023 must integrate by May 1, 2024.
Wave 11: Saudi VAT-registered businesses with a turnover between SAR 15 million and SAR 25 million in 2022 or 2023 must integrate by June 1, 2024.
ZATCA stated that phase 2 of e-invoicing is a step towards digital transformation and economic development, building on the success of phase 1. The implementation of phase 1, which began on December 4, 2021, mandated VAT-registered taxpayers to:
Avoid handwritten invoices.
Stop issuing computer-generated invoices using text editing software.
Use a ZATCA-compliant e-invoicing solution.
Include a QR code and other required data in invoices.
Store e-invoices and related CDNs.
The successful implementation of Phase 1 resulted in increased consumer protection and heightened awareness among taxpayers.
For more details on the Saudi e-invoicing initiative and how ADB World can assist your business in compliance, please contact us.
WhatsApp/ Call +966 58 179 2055 / +966 59 324 3799
Visit our website: adbworld.com
#ZATCA #EInvoicing #IntegrationPhase #SaudiArabia #TaxCompliance #Fatoora #BusinessDevelopment #VAT #Tax #EInvoicingIntegration #Compliance #ADBWORLD #TaxReform #VATRevenues
