The Zakat, Tax, and Customs Authority (ZATCA) has set the criteria for taxpayers targeted in the 19th wave of the Integration Phase of E-invoicing. This wave includes all establishments whose VAT-subject revenues exceeded SAR 1.75 million in 2022 or 2023.
According to a press release, ZATCA will notify targeted taxpayers in this wave to integrate their e-invoicing systems with the Fatoora platform by no later than September 30, 2025. This requirement is part of Phase Two of the E-invoicing initiative, known as the Integration Phase.
Integration phase requirements
Phase Two of the E-invoicing initiative builds on Phase One (Generation Phase) by introducing additional requirements. These include:
- Integrating e-invoicing solutions with ZATCA’s Fatoora platform.
- Issuing e-invoices in a specified format.
- Including additional mandatory fields in e-invoices.
The Integration Phase is being rolled out gradually, with ZATCA notifying taxpayers in waves. The authority has stated that remaining waves will be informed of their integration deadlines at least six months in advance.
ZATCA highlighted that the launch of the Integration Phase aligns with Saudi Arabia’s broader economic development and digital transformation goals. The authority noted the success of Phase One, which began on December 4, 2021, and achieved significant milestones, including enhancing consumer protection across the Kingdom.
Phase One required taxpayers to replace handwritten invoices or invoices generated via text editing and spreadsheet software with a compliant e-invoicing system. The system includes mandatory fields such as a QR code and other technical requirements, ensuring secure and efficient invoicing practices.