ZATCA begins rollout of second phase of e-invoicing system

Logo of Zakat, Tax and Customs Authority

The Zakat, Tax and Customs Authority (ZATCA) started today, June 24, the rollout of the second phase of e-invoicing system “Integration”. This phase aims to link and integrate the electronic invoices of taxpayers subject to the e-invoicing regulations to ZATCA’s Fatoora system. 

The integration phase will begin on Jan. 1, 2023 with the establishments selected under the first group, when these establishment fulfill the necessary requirements.

The entities included in this group were selected based on the size of revenue subject to the value-added tax (VAT) for 2021. The group includes establishments with revenue of more than SAR 3 billion, as long as such revenue is subject to the value-added tax (VAT). 

Taxpayers should fulfill additional requirements in the second phase, compared to the first phase of generation. 

ZATCA added that taxpayers will be gradually linked in waves to the second phase.

The subsequent groups will be notified directly by ZATCA at least six months before the integration date. 

The launch of the second phase extends the Kingdom’s economic boom and digital transformation, ZATCA added. 

The generation phase started on Dec. 4, 2021.