On Friday, 28th May, 2021, Zakat, Tax and Customs Authority has published the resolution of Controls, Requirements, Technical Specifications and Procedural Rules for Implementing the Provisions of the E-Invoicing Regulation.

The E-invoicing (FATOORAH) is being rolled out in two phases:

Phase One, known as the Generation phase and enforceable as of December 4th, 2021, will require Persons subject to the E-Invoicing Regulation to generate and store compliant tax invoices and notes using compliant electronic systems. 

Phase Two, known as the Integration phase and enforceable starting from January 1st 2023 and implemented in waves by targeted taxpayer groups. During this phase, subjective taxpayers must comply with Phase Two business and technical requirements for the electronic invoices and electronic solutions, and the integration with ZATCA’s system. Taxpayers will be notified by ZATCA on the date of their integration at least 6 months in advance.

The Authority invites all taxpayers from the business sector who are subject to the E-Invoicing Regulation and solution providers to view the resolution and check the requirements to ensure their readiness before the effective date of implementing e-invoicing (FATOORAH) that is scheduled for December 4th, 2021. The Authority also invites the Business sector to read the simplified guide for implementing E-Invoicing (FATOORAH) requirements through the link.

Zakat, Tax and Customs Authority has already published the draft resolution of the controls, requirements, technical specifications and procedural rules necessary to implement E-Invoicing regulations on March 18th, 2021, on "ISTITLA" platform of National Competitiveness Center, in order to poll the opinions of the public and stakeholders.

Implementing E-Invoicing (FATOORAH) aims to help the taxpayers from the business sector to fulfill their tax obligations, it also aims to limiting the transactions of shadow economy and commercial concealment.