Wave 22: E-Invoicing Phase 2 Compliance with ZATCA
ZATCA Wave 22 deadline for integration is approaching for businesses that meet the compliance criteria published. Taxpayers included in wave 22 of Phase 2, known as the Integration Phase, are obligated to ensure their compliance before December 31, 2025, the mandatory date set by the ZATCA.
Wave 22: Who is Included?
Wave 22 of Phase 2 of e-invoicing in Saudi Arabia includes taxpayers whose annual taxable revenue exceeded 1 million Saudi Riyals during the years 2022, 2023, or 2024. ZATCA has set December 31, 2025, as the final deadline for all taxpayers within this group to settle compliance requirements.
The Importance of Wave 22 Integration with ZATCA – Integration Phase
Integration with the Fatoora platform is a mandatory step to ensure compliance and avoid penalties. ZATCA grants businesses a prior notice period of 6 months for technical set-up needed before the final compliance date. Thus, making it easier for taxpayers to take early steps to ensure better compliance with the e-invoicing mandate on time.
Key Requirements of E-Invoicing Phase 2
Key requirements include:
- Mandatory linking between the system used and the “Fatoora” platform.
- Adherence to the e-invoice format in XML or PDF/A-3 format.
- Inclusion of QR Code in every invoice.
- Inclusion of the required additional fields for Phase 2.
- Compatibility of systems (accounting, ERP, POS, etc.) with the required technical standards.
- Inclusion of a Cryptographic Stamp to ensure the authenticity of the invoice issuer.
How Can Wave 22 Taxpayers Ensure Compliance on Time?
To ensure compliance accordingly, businesses must first correctly identify their needs, based on whether there is an internal system through which invoices are sent and received or not. That said, taxpayers have options that include:
1) Choosing A Qualified Service Provider for Integration with ZATCA – Such As InvoiceQ
Qualified e-invoicing solution providers accredited by ZATCA integrate the taxpayer’s financial, accounting, or ERP system with ZATCA in a way that best accommodates their needs. The service provider, in this case, takes full responsibility for keeping up with any tax updates related to e-invoicing that ZATCA may impose at any time.
2) Using A ZATCA-Compliant E-invoicing System
If the taxpayer does not currently use a system to issue and receive e-invoices, they can use a ZATCA-compliant e-invoicing system to electronically organize ZATCA compliant invoices according to the latest updates. The service provider also bears the responsibility of keeping up with any new tax update.
At InvoiceQ, We Offer Both Options:
- Using a fully integrated e-invoicing system for those who do not have an internal system.
- Connecting your existing system (ERP, POS, accounting…) directly via fully ready-made integration solutions, without any technical effort from your side.
What Are The Consequences of Not Integrating with ZATCA Phase 2?
Failure to link your establishment with ZATCA Phase 2 of e-invoicing (Integration Phase) may directly lead to penalties and fines related to non-compliance and repeated violations. Invoices that have not undergone electronic linking with the Fatoora platform are considered non-compliant. This, in turn, exposes the establishment to fines depending on the type of violation.
What To Watch Out for When Choosing An E-invoicing System?
- Adherence to all ZATCA updates.
- Direct integration with the Fatoora platform.
- Ease of use for all users.
- Seamless integration with accounting, financial, and POS systems.
- Fast technical support and continuous updates.
- Highest security standards to keep data protected.
- Accurate reports that aid in decision-making.
Why InvoiceQ is Your Ideal Choice To Integrate Wave 22 with ZATCA?
- Ready-made solutions for electronic linking: Direct integration with the “Fatoora” platform without changing your current system.
- 100% compliant e-invoicing system: To facilitate the issuance, sending, and organization of tax invoices according to ZATCA’s updated standards.
- Continuous technical support throughout preparation: A specialized team provides daily follow-up to ensure correct setup and stable operation.
- Quick and smooth setup: Integration within a short period and with minimal intervention from your side.
- Flexibility in system integration: Whether you use ERP, an accounting system, or POS, we provide the appropriate integration without changing your system.
- Automatic updates based on ZATCA requirements: We ensure your system always remains compliant with any new updates.
Your Journey To Compliance Begins with A Simple Step
InvoiceQ team works with you step-by-step to ensure your establishment is ready for ZATCA integration, from initial assessment to the full launch. We provide the necessary support to inspect systems, address any technical requirements, and ensure the process is implemented smoothly without disrupting your establishment’s workflow.
