Zakat, Tax and Customs Authority (ZATCA) determined the criteria for selecting the targeted taxpayers in the second wave for implementing “Integration Phase” of E-invoicing, as it clarified that the second wave included all taxpayers whose revenues subject to VAT exceeded (half a billion Saudi riyals) during 2021. VAT registered taxpayers meeting the criteria should integrated their E-invoicing solutions with (FATOORA) Platform starting from July 1, 2023.
ZATCA has stated that Phase Two (Integration Phase) requires additional requirements, the most prominent are to integrate taxpayer’s E-invoicing solutions with (FATOORA) Platform, issue electronic invoices based on a specific format, and include additional fields in the invoice. Furthermore, Phase Two (Integration Phase) of E-invoicing would be implemented in waves, and ZATCA would inform the following waves at least six months before their integration date.
It is noteworthy that the implementation of the Integration Phase of the first wave will be on January 1, 2023, for the taxpayers whose selection criteria were announced last June, after such taxpayers completed the necessary requirements to complete this phase.
ZATCA has noted that Phase Two (Integration Phase) of E-invoicing is as an extension of the economic development and digital transformation taking place in the Kingdom, and in continuation of the success story that began with Phase One (Generation phase) of E-invoicing, which achieved positive results, most notably raising the level of consumer protection in the Kingdom, in addition to witnessing the great awareness of taxpayers and the rapidity response in the implementation of Phase One (Generation Phase).
It is worth mentioning that Phase One (Generation Phase) of E-invoicing was enforced on December 4, 2021, which obliges taxpayers subject to E-invoicing Regulation to stop generating handwritten invoices or computer-generated invoices through text editing software, and make sure that there is a solution for E-invoicing that is compatible with the published requirements, in addition to generating and storing of E-invoices with the required fields, including the QR code and other requirements.
Source Zatca
