The Zakat, Tax, and Customs Authority (ZATCA) has announced the criteria for selecting taxpayers for the 13th wave of the Integration Phase of e-invoicing. This wave targets all taxpayers whose VAT-subject revenues exceeded SAR 7 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 between January 1, 2025, and March 31, 2025. This integration is part of ZATCA’s efforts to streamline tax compliance and enhance digital invoicing capabilities across Saudi Arabia.
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.
Wave 12: Businesses with a turnover between SAR 10 million and SAR 15 million in 2022 or 2023 must integrate from December 1, 2024.
Wave 13: All taxpayers whose VAT-subject revenues exceeded SAR 7 million in 2022 or 2023 must integrate between January 1, 2025, and March 31, 2025.
Conclusion
The phased implementation of e-invoicing by ZATCA is a strategic move to enhance transparency and efficiency in tax compliance within Saudi Arabia. Businesses falling under the stipulated criteria should ensure timely preparation and integration with the Fatoora portal to avoid any disruptions. By adhering to these guidelines, businesses can contribute to the Kingdom’s vision of a digitized and robust economic framework.
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