With less than 30 days left for 2023 to come to an end, it’s worth noting that the second phase set by ZATCA for The Integration Phase is also nearing an end for the announced waves. So, what’s the situation at the moment? And most importantly, do you still have time to comply before it’s too late to do so? Let’s figure this out together.
What’s This Whole Talk About Phases And Waves?
Let’s start off by briefly explaining what’s going on and why many organizations are now in a rush to be ZATCA-compliant by December 31.
In December 2021, ZATCA announced that the invoicing system in Saudi Arabia will be altered to one that implements E-invoicing systems. Not only that, a set of rules and requirements were shared to explain how the whole process was going to be executed. Thus, it started with Phase One known as The Generation Phase, and Phase Two known as The Integration Phase; which is our primary concern today so grab your coffee while we proceed.
Preparations For The Second Phase
The preparations for the second phase came after the first phase criteria were shared. Let’s take a quick look at the key requirements (optional and mandatory) for both phases side by side to help you follow up.
The first phase didn’t require much as it was the initial stage of the E-invoicing jump. However, the situation took another shift with the implementation of the second phase; The Integration Phase. Why is that?
The Second Phase and The Notice Period
The plan for the Integration Phase was a bit different from The Generation Phase. To make the process as smooth as possible, ZATCA decided to divide this phase into multiple waves and specified certain rules for each wave as follows:
First Wave:1/1/2023 To 30/6/2023
Second Wave:1/7/2023 To 31/12/2023
Third Wave:1/10/2023 To 31/1/2024
Fourth Wave:1/11/2023 To 29/2/2024
Fifth Wave:1/12/2023 To 31/3/2024
Sixth Wave:1/1/2023 To 30/4/2024
Seventh Wave:1/2/2024 To 31/5/2024
Eighth Wave:1/3/2024 To 30/6/2024
Ninth Wave:1/6/2024 To 30/9/202
The Ninth Wave was just announced and is considered the most recent one. Each wave includes a group of taxpayers of annual taxable revenue above a specific number as shared by ZATCA. The Ninth group includes taxpayers with taxable annual revenue above 30 million for 2021 or 2022. However, each group is notified ahead of time so it’s no surprise once the given time is up.
Knowing this matters because not complying within the time frame stated for your wave means that you’ll be up for some penalties for not adhering to the legislation, and the penalties are no joke after all.
So, What To Do?
First thing first, you have to check whether your organization has ticked any of the regulations for the waves announced by ZATCA so that you’re aware of the time left for you to integrate your system with The FATOORA platform. Okay, now you know that you have to comply but how do you do this?
For this you have two options, go the hard way and stumble on your own, or seek a professional’s help like the one we offer at InvoiceQ. Choosing to go with a professional is your better option because what you have to do research for, we already know and can put into action in no time. Therefore, it’s time-saving, cost-saving, and grants you 100% compliance with zero delays and penalties to pay.