ZATCA Sets Criteria for Targeted Taxpayers in Wave 12 of E-Invoicing Integration
ZATCA E-Invoicing Phase 2 – Twelfth Wave
The Zakat, Tax and Customs Authority (ZATCA) has announced the selection criteria for the Twelfth Wave of Phase 2 (Integration Phase) of Saudi Arabia's E-Invoicing (FATOORA) initiative. This wave further expands the mandatory integration program by including businesses with lower revenue thresholds, reinforcing the Kingdom's commitment to digital transformation and tax compliance.
Under the Twelfth Wave, all taxpayers whose VAT-subject revenues exceeded SAR 10 million during 2022 or 2023 are required to integrate their e-invoicing solutions with the ZATCA FATOORA platform. The mandatory integration for eligible taxpayers will begin on December 1, 2024.
The Twelfth Wave extends mandatory FATOORA integration to businesses with VAT revenues exceeding SAR 10 million, continuing ZATCA's phased implementation strategy across the Kingdom.
– ZATCA
- 1. Implementation Date: The Twelfth Wave of the Integration Phase becomes effective from December 1, 2024 for eligible VAT-registered taxpayers.
- 2. Eligibility Criteria: Businesses with VAT-subject revenues exceeding SAR 10 million during 2022 or 2023 are required to integrate their compliant e-invoicing systems with the FATOORA platform.
- 3. Integration Requirements: Phase 2 requires businesses to issue invoices in the prescribed electronic format, include mandatory invoice fields, and establish secure integration with ZATCA's FATOORA platform.
- 4. Gradual Rollout: ZATCA continues implementing the Integration Phase in multiple waves, notifying each targeted group at least six months before their mandatory compliance date.
The Integration Phase is a key component of Saudi Arabia's digital transformation strategy, enabling secure electronic invoice exchange, automated validation, and improved tax transparency. It builds upon the successful implementation of Phase 1 (Generation Phase), which significantly increased taxpayer compliance and strengthened consumer protection across the Kingdom.
Since December 4, 2021, businesses have been required to replace handwritten or manually created invoices with compliant electronic invoices generated through approved software solutions. These invoices must include mandatory information such as QR codes and other ZATCA-specified fields. The Twelfth Wave further advances this initiative by connecting eligible businesses directly to the FATOORA platform for seamless electronic invoicing and regulatory compliance.
