KSA's Zakat, Tax and Customs Authority (ZATCA) announced the criteria for the ninth wave of e-invoicing integratio

The Saudi Arabia Zakat, Tax, and Customs Authority (ZATCA) have recently released important updates regarding the criteria for taxpayers included in the ninth wave of Phase 2 e-invoicing integration. This announcement specifically applies to taxpayers in Saudi Arabia whose taxable turnover surpassed SAR30 million in either 2021 or 2022.

                                             On November 17, 2023, ZATCA published criteria for inclusion in the ninth wave of Phase 2 e-invoicing integration on its official website. Entities surpassing the SAR30 million taxable turnover thresholds in specific calendar years are required to comply. Those notified must align their electronic invoicing systems with ZATCA’s Fatoora platform as part of Phase 2 requirements.

Additionally, Governor of ZATCA issued Decision No. 23771 on 30/04/1445 AH, published in the Official Gazette on November 17, 2023. This decision mandates affected taxpayers in the ninth wave to meet Phase 2 e-invoicing requirements between June 1, 2024, and September 30, 2024.

E-invoicing in Saudi Arabia commenced on December 4th, 2020, with ZATCA's introduction of the E-Invoicing Regulation. It unfolded in two significant phases:

· Phase 1 (since December 4, 2021): This phase mandated the generation of e-invoices and e-notes, involving processing and record-keeping.

 · Phase 2 (since January 1, 2023): Phase 2 required taxpayer system integration with ZATCA, involving the transmission of e-invoices and e-notes to the authority. This phase progresses in waves, each with specific criteria and timelines, previously communicated by ZATCA for the first eight waves.

In light of recent announcements, ZATCA is commencing the notification process for taxpayers within the ninth wave of Phase 2 e-invoicing integration, scheduled between June 1, 2024, and September 30, 2024.

 Implications:

Resident businesses meeting the criteria should respond to ZATCA's notifications and adapt their IT systems accordingly to comply with Phase 2 requirements outlined in the e-invoicing regulation, avoiding potential penalties.

Taxpayers outside the initial eight waves should remain vigilant, monitoring ZATCA's announcements for subsequent integration timelines relevant to them.