ZATCA sets criteria for 8th wave in integration phase of e-invoicing

Logo of Zakat, Tax and Customs Authority (ZATCA)

The Zakat, Tax and Customs Authority (ZATCA) set the criteria for selecting the targeted taxpayers in the eighth wave for implementing the "Integration Phase" of e-invoicing. The eighth wave included all taxpayers, whose revenues subject to VAT exceeded SAR 40 million during 2021 or 2022.

VAT registered taxpayers meeting the criteria should integrate their e-invoicing solutions with Fatoora platform starting from March 1, 2024.

ZATCA has stated that the second phase (Integration Phase) requires additional requirements, the most prominent of which are to integrate taxpayers' e-invoicing solutions with ZATCA's platform (FATOORA), issue e-invoices based on a specific format, and include additional fields in the invoice. Furthermore, Phase Two (Integration Phase) of E-invoicing would take place gradually in waves, and ZATCA would inform the following waves directly at least six months before their integration date.

In a statement, ZATCA said that the launch of the integration phase has additional requirements, compared to Phase 1 (the generation phase), mainly linking the e-invoicing systems of taxpayers with Fatoora, issuing e-invoices in a specified form and including more elements in the invoice.

The second phase will be implemented gradually. The next waves will be announced at least six months before the date specified by ZATCA.

It is worth mentioning that Phase 1 (Generation Phase) of E-invoicing, was introduced on Dec. 4, 2021. It obliges taxpayers subject to the e-invoicing regulations to stop generating handwritten or computer-generated invoices through text editing software and use a technical e-invoicing solution that is compatible with the ZATCA requirements.