E-INVOICING (FATOORAH) IMPLEMENTATION IN KSA
ZATCA has published e-invoicing requirements that will be rolled-out into two main phases in KSA:
PHASE 1 (as of December 4th, 2021)
Phase 1, known as the Generation phase, will require taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements.
Phase 1 is enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT.
PHASE 2 (enforceable starting January 1st, 2023 in waves)
Phase 2, known as the Integration phase and rolled-out in waves by targeted taxpayer group, will involve the introduction of Phase 2 technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s systems.
ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance, and is rolled-out in waves by taxpayer group, as shown above in the table.