ZATCA Outlines Criteria for Taxpayers Targeted in
Sixteenth E-Invoicing Integration Wave

The Zakat, Tax and Customs Authority (ZATCA) has set out the criteria for identifying taxpayers included in the 16th wave of the “Integration Phase” for e-invoicing. This wave targets taxpayers with VAT-liable revenues exceeding SAR 3 million in either 2022 or 2023.

Taxpayers meeting this criterion will be notified to connect their e-invoicing systems to the (Fatoora) platform starting April 1, 2025. 

Integration Phase Requirements for E-Invoicing

Phase Two, known as the Integration Phase, imposes more advanced requirements than Phase One (the Generation Phase). Key obligations include integrating e-invoicing systems directly with the ZATCA’s (Fatoora) platform, issuing invoices in a standardized format, and incorporating additional fields into invoices. This phase will be implemented in waves, with ZATCA providing targeted taxpayers with a minimum of six months’ notice before their integration date. 

Alignment with Digital Transformation Goals

The rollout of Phase Two is part of Saudi Arabia’s larger agenda for economic development and digital transformation. Building on the success of Phase One, which led to enhanced consumer protection, ZATCA commends the swift and informed response of taxpayers in adapting to the Generation Phase of e-invoicing.

Overview of Phase One (Generation Phase)

Phase One, which came into effect on December 4, 2021, required taxpayers subject to the e-invoicing regulations to discontinue the use of handwritten or text-editor-generated invoices. Instead, they were obligated to use e-invoicing solutions compliant with the mandated requirements, including generating e-invoices with specific fields like a QR code and ensuring proper storage of those invoices.