Wave 14: Phase Two of E-Invoicing Preparation
Taxpayers included in wave fourteen of Phase Two (The Integration Phase) need to start preparing to become fully compliant with ZATCA Phase 2 requirements by April 30, 2025, which will be marking the final compliance date for wave 14 taxpayers. ZATCA continues to implement the E-invoicing regulation in a phased manner by classifying VAT taxpayers into groups known as “waves” in the Kingdom of Saudi Arabia with assigned deadlines and notice periods to each; ensuring a smooth and efficient transition.
Phase 2 of E-Invoicing: Why is it Important for Wave14?
Compliance with The Integration Phase requirements set by ZATCA has become mandatory for all VAT taxpayers included in wave 14. Wave Fourteen includes taxpayers whose annual taxable revenues exceeded SAR 5 million during the years 2022 or 2023. This means that integration with the FATOORA platform is an essential step to comply with ZATCA’s E-invoice standards to avoid non-compliance penalties.
ZATCA Invoice Compliance Requirements for Phase Two
The requirements set by ZATCA for Phase 2 of E-invoicing include:
- Mandatory integration with the ZATCA’s FATOORAH platform.
- Adherence to ZATCA E-invoices format, including tax invoice & simplified tax invoice.
- Inclusion of a QR code in every E-invoice issued.
- Inclusion of all additional fields required by ZATCA as part of Phase 2 requirements.
- Ensuring that accounting, financial, or any other systems used are compatible with the technical standards for ZATCA E-invoice requirements.
How Can Wave 14 Taxpayers Ensure Compliance?
The compliance journey for businesses in wave 14 starts by identifying the type of system the business currently uses. Businesses with accounting, financial, or other internal systems can integrate with ZATCA by relying on ZATCA approved E-invoicing solution providers for Phase Two like InvoiceQ, or by using an invoicing system that complies with the tax and technical instructions published on the ZATCA website.
Things To Consider When Choosing E-invoicing System:
- Ability to comply with tax updates in line with Phase Two requirements.
- Integration with ZATCA and the ability to send and receive invoices directly.
- Ease of use, enabling any user to generate compliant ZATCA invoices.
- Compatibility to integrate with accounting, financial, and POS systems used.
- Availability of technical support and ongoing updates.
- High security standards to protect customer data and financial transactions.
- Comprehensive reporting tools to support financial tracking and informed decision-making.
- Customization options that allow the business to issue E-invoices that align with the brand.
Our Clients
Contact Us To Integrate Wave 14 with Phase Two
With InvoiceQ, we simplify your business’s compliance with ZATCA’s requirements and ensure smooth integration with ZATCA through precise tools and tailored services that meet your needs. Contact our team of experts and get a free demo today!
