ZATCA Announces Criteria for Targeted Taxpayers in
Wave 17 of the E-Invoicing “Integration Phase”

The Zakat, Tax, and Customs Authority (ZATCA) has released the criteria for selecting the taxpayers targeted in the seventeenth wave of the “Integration Phase” for e-invoicing. This wave includes all taxpayers with VAT-liable revenues exceeding SAR 2.5 million in either 2022 or 2023.

ZATCA has also announced that all taxpayers in this wave will receive notification to integrate their e-invoicing solutions with the (Fatoora) platform by July 31, 2025. Unlike Phase One (the Generation Phase), the Integration Phase requires more advanced compliance measures, such as integrating e-invoicing solutions directly with ZATCA’s Fatoora platform, issuing invoices in a specified format, and including additional fields in invoices.

The Integration Phase is being implemented in progressive waves, and ZATCA will inform each wave’s taxpayers at least six months in advance. This phase supports the Kingdom’s digital transformation and economic development, building on the achievements of Phase One, which has contributed to increased consumer protection and a high level of taxpayer compliance.

Introduced on December 4, 2021, Phase One required taxpayers to stop generating handwritten invoices or using text editors and spreadsheets for invoicing. Instead, it mandated compatible e-invoicing solutions that include QR codes and comply with specific data fields and storage requirements.