As the implementation of the Second Phase of E-invoicing known as the “Integration Phase” in Saudi Arabia continues, ZATCA is still announcing new waves to include more VAT taxpayers. Thus, ZATCA has declared the criteria for the twelfth wave of businesses required to integrate. The twelfth wave includes all VAT taxpayers with annual taxable revenue above 10 million SAR for 2022 or 2023.
This mandates VAT taxpayers of the twelfth wave to integrate with the Fatoorah platform to become ZATCA-compliant as of Dec 1, 2024. Similar to previous waves, the twelfth wave obliged taxpayers to be notified 6 months ahead of their integration date so they’re able to comply and prepare what’s needed during a reasonable period of time.
It’s worth noting that Phase Two (The Integration Phase) of E-invoicing in Saudi Arabia mandates additional requirements to Phase One (The Generation Phase). This includes things like integrating the organization’s internal system with the Fatoorah platform, abiding by additional E-invoice format rules, following the technical guidelines shared by ZATCA, using an E-invoicing system qualified by ZATCA, and other regulations.
ZATCA encourages VAT taxpayers included in the twelfth wave to speed up the compliance process not only to avoid penalties but also to ensure better economic and managerial perks that come with using E-invoicing systems in organizations. Additionally, it plays a pivotal role in combating the shadow economy, protecting sellers & consumers, and raising awareness of the crucial role it plays in reporting any business violating the rules to ensure everyone is equally treated under the law.
This move towards E-invoicing in Saudi Arabia started in Dec 2021 to eliminate the use of paper invoices or any other form that doesn’t comply with the authorized E-invoicing software guidelines and rules. In turn, this helped ensure tax compliance, fair competition between businesses, and early detection of violations to support the 2030 vision.
At InvoiceQ, we provided various E-invoicing solutions through our E-invoicing system qualified by ZATCA as well as integration solutions of your existing internal system with ZATCA in no more than 10 days only. Contact us today and comply without penalties today!
To know the best option for your business, contact our experts & book a free trial or a system demo.
