The Zakat, Tax and Customs Authority (ZATCA) has officially announced the 19th wave of the Integration Phase (Phase Two) for E-invoicing in Saudi Arabia. This initiative is part of the Kingdom’s ongoing efforts to drive digital transformation and enhance tax compliance.
Who’s Included in Wave 19?
Businesses targeted in this wave are those with VAT-liable revenues exceeding SAR 1.75 million in 2022 or 2023. If your business qualifies, you’ll need to integrate your E-invoicing system with the Fatoora platform by September 30, 2025.
What Does the Integration Phase (Phase Two) Involve?
This phase comes with additional requirements compared to Phase One (Generation Phase):
- Platform Integration: Businesses must connect their E-invoicing systems with ZATCA’s Fatoora platform.
- Specific Invoice Format: Invoices must meet updated technical standards and include additional fields.
- Gradual Rollout: The phase is being implemented in waves, with taxpayers notified at least six months in advance.
Why E-Invoicing Matters
ZATCA launched Phase One (Generation Phase) on December 4, 2021, requiring businesses to transition from handwritten or basic computer-generated invoices to a compliant E-invoicing system. This move supports Saudi Arabia’s vision of economic growth and digital transformation, while also:
- Enhancing consumer protection.
- Simplifying compliance for businesses.
- Boosting transparency in financial transactions.
What Should Businesses Do?
If your business is included in Wave 19:
- Prepare to upgrade your invoicing systems to meet ZATCA’s guidelines.
- Ensure integration with the Fatoora platform before the September 30, 2025 deadline.
- Stay informed by reviewing ZATCA’s resources and guidance on E-invoicing.
Looking Ahead
The rollout of Phase Two is a continuation of the success of Phase One, which received widespread praise for its efficiency and ease of adoption. Businesses are encouraged to act promptly to ensure a smooth transition and avoid potential penalties.
