Intro
E-invoicing implementation in Saudi Arabia started in Dec 2021 through phases; these phases included what became known as “ The Generation Phase ” which is the first one and “ The Integration Phase ” which is the second phase. After Phase One ended, Phase Two became effective, however; ZATCA set Phase Two to be implemented in groups known as “ Waves ” for taxpayers to organize the process instead of requiring all taxpayers to comply at the same time. This way it ensures a clear and concise strategy for organizations to understand and execute.
Organizations Included in Waves 1 To 9
Includes taxpayers whose annual taxable revenue exceeded 30 SAR. With the final compliance date of these waves coming to end, this means they’re forced to integrate with ZATCA and have to handle the penalties of their non-compliance with the FATOORA platform within the required time frame.
That said, the remaining waves till this moment include waves from 10 to 18; which is the most recent wave ZATCA has announced but certainly not the last. Wave 18 includes taxpayers whose annual taxable revenue exceeds 2M SAR.
Phase Two Remaining Waves
Wave 10:
1/10/2024 To 31/12/2024
Wave 11:
1/11/2024 To 31/1/2025
Wave 12:
1/12/2024 To 28/2/2025
Wave 13:
1/1/2025 To 31/3/2025
Wave 14:
1/2/2025 To 30\4\2025
Wave 15:
1/3/2025 To 31\5\2025
Wave 16:
1\4\2025 To 30\6\2025
Wave 17:
31\7\2025
Wave 18:
31\8\2025
Compliance And Notice Period
It’s worth the mention that taxpayers included in the remaining waves and those whose compliance date is over as well get a 6-month-prior notice period to notify them and give them enough time to take the necessary steps to integrate their ERP or accounting system with the FATOORA platform while ensuring they meet all technical and tax requirements to issue correct E-invoices. If the due date is over and the organization has not yet compiled, penalties of non-compliance are placed according to ZATCA’s rules.
Integration With Phase Two of E-invoicing
Integration with Phase Two of E-invoicing in Saudi Arabia requires compliance with the standards and requirements set by ZATCA.
Key Requirements Include
- All invoices should be in E-form and comply with ZATCA to prohibit sharing of invoices in paper form or any other form.
- QR code should be on the invoice.
- Integration with the FATOORA platform is required.
- Invoice title detailing its type.
- Invoice in XML format.
- Invoice can’t be altered, or changed.
- Adhering to technical requirements is mandatory.
Compliance With ZATCA
Integration with ZATCA can be challenging if no technical team is available to integrate your organization’s system. This is where the need for an E-invoicing solution provider like InvoiceQ becomes prominent, as we are capable of integrating your current system without changing it. And in case you didn’t have an E-invoicing system to manage your invoices, you can use InvoiceQ’s system to send and receive ZATCA-compliant invoices in minutes only.
Want to learn more details about ZATCA for Phase Two? Contact our team of experts and get a free system demo.
