ZATCA Determines Selection Criteria for Targeted Taxpayers in Wave 19 for Integration Phase of E-Invoicing

The Zakat, Tax and Customs Authority (ZATCA) has determined the criteria for selecting the targeted taxpayers in the 19th wave for implementing the Integration Phase of E-invoicing, which included all establishments whose revenues subject to VAT exceeded SAR1.75 million in 2022 or 2023.

 According to a ZATCA press release, the authority will notify all targeted taxpayers in the 19th wave to integrate their e-invoicing solutions with the Fatoora platform by no later than September 30, 2025.

 ZATCA has stated that Phase Two (Integration Phase) necessitates additional requirements to Phase One (Generation Phase), mainly integrating taxpayers’ e-invoicing solutions with ZATCA's platform Fatoora, issuing e-invoices based on a specific format, and including additional fields in the invoice.

 Furthermore, the Integration Phase would take place gradually in waves and ZATCA would directly notify the remaining waves at least six months prior to their integration date.

 ZATCA noted that the launch of Phase Two of E-invoicing is part of the Kingdom's economic development and digital transformation and a continuation of the success story that began with Phase One, which achieved positive results, mainly raising the level of consumer protection throughout the Kingdom. It praised the great awareness of taxpayers and their rapid response in implementing the first phase of the project, according to the press release.

 The Generation Phase of E-invoicing was first introduced on December 4, 2021, requiring taxpayers subject to the E-invoicing Regulation to stop generating handwritten invoices or computer-generated invoices through text editing software or spreadsheet software, ensuring there is a technical solution for e-invoicing that is compatible with the requirements, in addition to generating and storing e-invoices with the mandatory fields, including the QR code and other requirements.