- Saudi Arabia's Zakat, Tax and Customs Authority has announced the criteria for taxpayers to be included in the 18th wave of Phase 2 e-invoicing integration.
- Taxpayers resident in Saudi Arabia, with a taxable turnover exceeding SAR2m during the calendar year 2022 or 2023, should comply with the Phase 2 e-invoicing requirements that are effective from 1 June 2025.
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Executive summary
On 29 November 2024, Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) announced on its website that taxpayers resident in Saudi Arabia, with a taxable turnover exceeding two million Saudi Riyal (SAR2m) during calendar year 2022 or 2023, will fall within the 18th wave of Phase 2 e-invoicing integration and should comply with the Phase 2 requirements. The ZATCA will notify the impacted taxpayers in preparation for linking and integrating their electronic invoicing systems with the ZATCA's e-invoicing platform (Fatoora).
Further, the ZATCA Governor issued Decision No. (1446-99-671) dated 18/05/1446AH, which was published in the Official Gazette on 29 November 2024 and mentions that taxpayers coming under the 18th wave should comply with the Phase 2 e-invoicing requirements between 1 June 2025 and 31 August 2025, inclusive of both dates.
Detailed discussion
Background
On 4 December 2020, the ZATCA introduced e-invoicing in Saudi Arabia, releasing the E-Invoicing Regulations. E-invoicing in Saudi Arabia is being implemented in two phases:
- Phase 1, effective from 4 December 2021, mandates generation of e-invoices and e-notes, including related processing and recordkeeping.
- Phase 2, effective from 1 January 2023, mandates integration of a taxpayer's system with the ZATCA, along with the transmission of e-invoices and e-notes to the ZATCA. This phase is being implemented in waves. The criteria and timelines for the first 17 waves, which were previously announced, are:
Wave
| Criteria
| Timeline
|
11
| Turnover of more than SAR3b during calendar year 2021
| 1 January 2023 to 30 June 2023
|
22
| Turnover of more than SAR500m up to SAR3b during calendar year 2021
| 1 July 2023 to 31 December 2023
|
33
| Turnover of more than SAR250m during calendar year 2021 or 2022
| 1 October 2023 to 31 January 2024
|
44
| Turnover of more than SAR150m during calendar year 2021 or 2022
| 1 November 2023 to 29 February 2024
|
55
| Turnover of more than SAR100m during calendar year 2021 or 2022
| 1 December 2023 to 31 March 2024
|
66
| Turnover of more than SAR70m during calendar year 2021 or 2022
| 1 January 2024 to 30 April 2024
|
77
| Turnover of more than SAR50m during calendar year 2021 or 2022
| 1 February 2024 to 31 May 2024
|
88
| Turnover of more than SAR40m during calendar year 2021 or 2022
| 1 March 2024 to 30 June 2024
|
99
| Turnover of more than SAR30m during calendar year 2021 or 2022
| 1 June 2024 to 30 September 2024
|
1010
| Turnover of more than SAR25m during calendar year 2022 or 2023
| 1 October 2024 to 31 December 2024
|
1111
| Turnover of more than SAR15m during calendar year 2022 or 2023
| 1 November 2024 to 31 January 2025
|
1212
| Turnover of more than SAR10m during calendar year 2022 or 2023
| 1 December 2024 to 28 February 2025
|
1313
| Turnover of more than SAR7m during calendar year 2022 or 2023
| 1 January 2025 to 31 March 2025
|
1414
| Turnover of more than SAR5m during calendar year 2022 or 2023
| 1 February 2025 to 30 April 2025
|
1515
| Turnover of more than SAR4m during calendar year 2022 or 2023
| 1 March 2025 to 31 May 2025
|
1616
| Turnover of more than SAR3m during calendar year 2022 or 2023
| 1 April 2025 to 30 June 2025
|
1717
| Turnover of more than SAR2.5m during calendar year 2022 or 2023
| 1 May 2025 to 31 July 2025
|