Wave 20: ZATCA E-Invoicing – Phase 2
Businesses included in Wave 20 of Phase 2 (Integration Phase) are preparing to comply with the E-Invoicing requirements set by ZATCA with the deadline of October 31, 2025. This date has been officially announced by ZATCA as the final compliance date for Wave 20.ZATCA continues to implement an approach that categorizes VAT-registered taxpayers in Saudi Arabia into specific waves during Phase Two of E-Invoicing, setting deadlines with a notice period for each wave to ensure smooth and efficient compliance.
Why is Phase 2 E-Invoicing Important for Wave 20 Taxpayers?
Compliance with ZATCA’s integration requirements is now mandatory for every establishment included in Wave 20. This wave includes taxpayers whose annual revenues exceeded 1.5 million Saudi Riyals (SAR) during the years 2022 or 2023. Consequently, integrating with ZATCA’s “Fatoora” platform is an essential step for compliance and for avoiding penalties resulting from failure to adhere before the deadline.
Compliance Requirements for Phase Two Integration with ZATCA
The key requirements for Phase 2 of E-Invoicing in Saudi Arabia include:
- Mandatory linking with the “Fatoora” platform operated by ZATCA.
- Adhering to the specific standards for the E-Invoice format, whether it is a B2B Invoice or a B2C Invoice (in XML or PDF/A-3 format).
- Inclusion of a QR Code in every E-Invoice issued.
- Inclusion of all additional fields required by ZATCA for Phase 2 E-Invoicing standards.
- Ensuring the compatibility of accounting, financial, or any other systems used by the establishment with the updated technical standards.
How Can Wave 20 Entities Ensure Compliance?
Compliance for entities included in Wave 20 begins by identifying the type of system used by the establishment. Entities that operate an accounting, financial, or other relevant system can link their systems directly with ZATCA through several options, including:
1. Relying on qualified E-Invoicing solution providers for Phase 2, accredited by ZATCA, such as InvoiceQ.
2. Using an E-Invoicing system that is compliant with all the E-Invoicing requirements for Phase Two in Saudi Arabia.
Key Considerations when Choosing a Tax E-Invoicing Issuance System:
- Compliance Updates: The system’s ability to continuously comply with ZATCA’s updates according to Phase 2 standards.
- Direct Linking: The capability to link with ZATCA and send invoices directly and instantly.
- Ease of Use: Enabling users of all levels to create compliant tax invoices easily.
- System Integration: The possibility of linking and integrating the system with any accounting, financial, or other Point of Sale (POS) software used.
- Support and Updates: Providing effective technical support and continuous updates to ensure tax compliance and seamless operation.
- Security: Ensuring high security levels to protect customer data and financial transactions.
- Reporting: Offering comprehensive reports that assist in financial monitoring and informed decision-making.
Our Clients
InvoiceQ & Wave 20 Compliance
With Invoice Q, we facilitate your establishment’s complete compliance with ZATCA instructions and seamlessly link you through precise solutions and specialized services that meet your needs. Contact our team of experts and get a free demo today!
