The Saudi  Zakat, Tax, and Customs Authority (ZATCA) announced on 21 March 2025 the criteria for the 22nd group of taxpayers required to comply with the second phase of the electronic invoicing (e-invoicing) system which includes all taxpayers whose VAT-subject revenues exceeded SAR 1 million during 2022, 2023 or 2024.

Moreover, ZATCA explained that it will notify all targeted taxpayers in the 22 Wave to integrate their e-invoicing solutions with the Fatoora Platform no later than 31 December 2025.

ZATCA has stated that Phase Two (Integration Phase) requires additional requirements compared to Phase One (Generation Phase), the key requirement being integrating taxpayers’ e-invoicing solutions with ZATCA’s Fatoora platform, issuing e-invoices in a specific format, and including additional fields in the invoice.

Furthermore, Phase Two will take place gradually in waves, and ZATCA will inform each wave at least six months before its integration date.

ZATCA has noted that the launch of Phase Two is part of the Kingdom’s economic development and digital transformation efforts.

Phase One was introduced on 4 December 2021, requiring taxpayers subject to the E-invoicing Regulation to stop generating handwritten invoices or computer-generated invoices using text editing or spreadsheet software.

The regulation ensures that a compliant E-invoicing solution is in place, allowing for the generation and storage of E-invoices with all required fields, including the QR code and other mandated elements.

Earlier, The Saudi Zakat, Tax, and Customs Authority (ZATCA) outlined the criteria for the 21st phase of integration under the country’s new E-Invoicing (FATOORA) requirements on 28 February 2025.