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The Zakat, Tax and Customs Authority (ZATCA) has announced the next stage of its nationwide e-invoicing rollout, revealing the selection criteria for taxpayers included in Wave 22 of the “Integration Phase.”
According to ZATCA, this latest group will include all taxpayers whose revenues subject to VAT exceeded SAR 1 million during any of the years 2022, 2023, or 2024. Targeted entities will be formally notified and required to complete integration with the authority’s Fatoora platform no later than December 31, 2025.
This announcement marks a continuation of Saudi Arabia’s ambitious push toward digitizing its tax infrastructure as part of its broader Vision 2030 economic reform plan.
Integration Phase Explained
The Integration Phase, also known as Phase Two, follows the initial “Generation Phase” introduced in December 2021. While the first phase focused on eliminating handwritten and manually generated invoices, Phase Two introduces stricter technical requirements. These include real-time data integration with the Fatoora platform, issuance of invoices in standardized formats, and inclusion of additional mandated fields.
ZATCA emphasized that Wave 22 is part of a gradual rollout strategy. Each wave of taxpayers is being given at least six months’ notice to prepare for mandatory integration.
Background and Strategic Goals
Saudi Arabia was one of the earliest countries in the region to implement mandatory e-invoicing. The Generation Phase saw high levels of compliance, increased transparency, and better consumer protection, according to ZATCA. The authority now views the Integration Phase as critical for building a fully connected and transparent digital tax system.
Officials also noted that the move is designed to enhance operational efficiency, reduce tax evasion, and support the Kingdom’s efforts toward building a modern digital economy.
What Businesses Should Know
Companies falling under Wave 22 are advised to assess their current invoicing systems and begin preparations for full integration well ahead of the December 2025 deadline. Non-compliance may lead to administrative penalties and delays in business operations.
ZATCA is expected to continue announcing future waves, with a long-term vision of achieving full market-wide integration across sectors.
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