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ZATCA sets criteria for target firms to apply phase II of e-invoicing

A general view of Saudi Arabia's Zakat, Tax and Customs Authority office. (Twitter/@Zatca_sa)
  • ZATCA said that it will notify all targeted establishments in preparation for linking the electronic billing systems with the Fatoora platform, starting January 1, 2024.
  • It stressed that phase II includes additional requirements including issuing E-invoices based on a specific format.

RIYADH, SAUDI ARABIA – The Zakat, Tax and Customs Authority (ZATCA) has set the criterion for selecting target establishments in the sixth group to apply the integration phase of e-invoicing which includes all establishments with revenues (subject to value-added tax (VAT)) exceeding SR70 million during 2021 and 2022.

ZATCA has stated that it will notify all targeted establishments in preparation for linking the electronic billing systems with the Fatoora platform, starting from January 1, 2024.

It stressed that Phase II includes additional requirements, most notably linking the electronic billing systems of taxpayers with the Fatoora platform, and issuing E-invoices based on a specific format, in addition to several specific items on the invoice.

The authority also indicated that the obligation in phase II (Integration Phase) would be implemented gradually and in groups, provided that the authority informs the subsequent groups directly at least six months before the date specified for the linkage.

Phase I of the e-invoicing project (the Generation Phase) was implemented on December 4, 2021, which obliges taxpayers who are subject to the electronic invoicing regulations to completely cease the use of issuing handwritten invoices or invoices generated on computers through text editing software or the numbers analysis software.

The phase I also ensures that there is a technical solution for electronic billing that is compatible with the requirements set by ZATCA, in addition to ensuring that electronic invoices are issued and documented, including the QR Code.