Saudi Arabian Zakat, Tax and Customs Authority (ZATCA) announced the criteria for the 15th group of taxpayers who must adhere to the second phase of the e-invoicing system implementation on 30 August 2024. This initiative is part of ZATCA’s efforts to modernise the tax system and improve compliance.
The 15th group will consist of taxpayers whose VAT-liable revenues exceeded SAR 4 million in 2022 or 2023. In the second phase, known as the integration phase, these taxpayers are required to integrate their e-invoicing systems with the FATOORA Platform. Compliance for this group will begin on 1 March 2025.
Additionally, the ZATCA Governor issued Decision No. (1446-99-202) on 14/02/1446AH, which was published in the Official Gazette on 30 August 2024. This decision states that taxpayers in the 15th wave must comply with Phase 2 e-invoicing requirements from 1 March 2025 to 31 May 2025, inclusive.
ZATCA has specified that this phase will require e-invoices to be issued in a designated format and include additional fields. In line with the phased approach, ZATCA will give taxpayers a six-month notice before their compliance deadline. This phase also introduces new requirements for storing e-invoices, including the inclusion of a QR code.
ZATCA advises taxpayers to start preparing for the second phase of e-invoicing implementation and to consult with the authority for guidance if needed. It also emphasises that compliance with the e-invoicing system is mandatory, and failure to comply could result in penalties.
