The E-Invoicing mandate in Saudi Arabia is being implemented in several phases. Here is the timeline of the mandate:
- Phase 1 (Generation Phase):
- Effective from December 4, 2021, Phase 1 mandates the generation of e-invoices and e-notes, including related processing and record-keeping
- Phase 2 (Integration Phase):
- Phase 2 of e-invoicing in Saudi Arabia has been implemented in waves, starting from January 2023. The new threshold for taxpayers required to comply with Phase 2 was announced to be effective from March 1, 2024
- Ongoing Waves:
- Saudi Arabia has been rolling out e-invoicing in waves, and there have been multiple waves of implementation, with each wave bringing more taxpayers into compliance
This phased approach is part of Saudi Arabia’s efforts to modernize and digitize its invoicing and tax systems. Businesses operating in Saudi Arabia need to comply with the specific requirements of each phase as they are implemented.
The waves:
- Wave 1 starting January 1, 2023 – Annual taxable revenues above SAR 3 billion
- Wave 2 starting July 1, 2023 – Annual taxable revenues above SAR 500 million
- Wave 3 starting October 1, 2023 – Annual taxable revenues above SAR 250 million
- Wave 4 starting November 1, 2023 – Annual taxable revenues above SAR 150 million
- Wave 5 starting December 1, 2023 – Annual taxable revenues above SAR 100 million
- Wave 6 starting January 1, 2024 – Annual taxable revenues above SAR 70 million
- Wave 7 starting February 1, 2024 – Annual taxable revenues above SAR 50 million
- Wave 8 starting March 1, 2024 – Annual taxable revenues above SAR 40 million
- Wave 9 starting June 1, 2024 – Annual taxable revenues above SAR 30 million
- Wave 10 starting October 1, 2024 – Annual taxable revenues above SAR 25 million
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