The ZATCA announces the implementation of Wave 6 of e-Invoicing in the Kingdom of Saudi Arabia
ZATCA E-Invoicing Phase 2 – Sixth Wave
The Zakat, Tax, and Customs Authority (ZATCA) has announced the selection criteria for the Sixth Wave of Phase 2 (Integration Phase) of Saudi Arabia's E-Invoicing (FATOORA) initiative. This wave expands the scope of mandatory integration by including additional VAT-registered businesses, supporting the Kingdom's ongoing digital transformation and strengthening tax compliance.
Under the Sixth Wave, all VAT-registered taxpayers with annual revenues exceeding SAR 70 million during 2021 or 2022 are required to integrate their e-invoicing solutions with the ZATCA FATOORA platform. The mandatory integration for these businesses becomes effective from January 1, 2024.
The Sixth Wave targets VAT-registered businesses with revenues above SAR 70 million and continues ZATCA's phased rollout of mandatory integration with the FATOORA platform.
– ZATCA
- 1. Implementation Date: The Sixth Wave of the Integration Phase becomes mandatory from January 1, 2024 for eligible VAT-registered taxpayers.
- 2. Eligibility: Businesses with annual revenues exceeding SAR 70 million during either 2021 or 2022 must integrate their compliant e-invoicing solutions with the ZATCA FATOORA platform.
- 3. Phase 2 Requirements: Businesses must issue invoices in the prescribed electronic format, include all mandatory invoice fields, and establish secure integration with the FATOORA platform for regulatory compliance.
- 4. Advance Notification: ZATCA provides taxpayers with at least six months' notice before their mandatory integration date, allowing sufficient time for technical preparation and compliance.
ZATCA considers the Integration Phase a significant milestone in Saudi Arabia's digital transformation strategy. The authority has recognized the successful implementation of Phase 1 (Generation Phase), which improved tax compliance, enhanced consumer protection, and demonstrated strong cooperation from taxpayers across the Kingdom.
Introduced on December 4, 2021, Phase 1 required taxpayers to discontinue handwritten or manually prepared invoices and instead generate electronic invoices using compliant software solutions. These invoices must include mandatory information such as QR codes and other ZATCA-specified fields. Phase 2 builds upon this foundation by enabling direct integration with the FATOORA platform for automated validation and secure electronic invoice exchange.
