Zakat, Tax and Customs Authority Initiates Procedures for Implementing Phase Two (Integration Phase) of E-invoicing Project
E-Invoicing Mandate in KSA
The Zakat, Tax and Customs Authority (ZATCA) has officially launched the implementation of Phase 2 (Integration Phase) of the Saudi Arabian E-Invoicing (FATOORA) initiative. This phase enables the integration of taxpayers' e-invoicing solutions with ZATCA's FATOORA platform, allowing electronic invoices to be validated and exchanged securely while ensuring compliance with Saudi tax regulations.
To support a smooth transition, ZATCA communicates directly with the taxpayers selected for each implementation wave, providing guidance on the required technical integration and compliance procedures. The phased rollout allows businesses sufficient time to prepare their systems before becoming subject to mandatory integration.
Phase 2 of the FATOORA project connects taxpayers' e-invoicing systems directly with ZATCA's platform, enabling secure, real-time invoice validation and regulatory compliance.
– ZATCA
- 1. ZATCA has introduced the Integration Phase of e-invoicing to establish direct communication between taxpayers' invoicing systems and the FATOORA platform.
- 2. Phase 2 implementation officially began on January 1, 2023, starting with taxpayers selected in the first implementation wave.
- 3. ZATCA notifies the selected taxpayers individually and provides the necessary procedures and timelines for completing system integration.
- 4. The phased rollout ensures businesses can upgrade their e-invoicing solutions while maintaining full compliance with Saudi Arabia's VAT regulations.
The first wave of the Integration Phase targeted businesses whose VAT-taxable revenue exceeded SAR 3 billion during the 2021 fiscal year. These organizations were required to integrate their compliant e-invoicing systems with the ZATCA platform according to the authority's implementation schedule.
ZATCA continues to introduce additional implementation waves based on taxpayer eligibility and revenue thresholds. Businesses should regularly monitor official announcements and ensure their e-invoicing solutions remain fully compliant with the latest technical specifications and integration requirements published by the authority.
