The Zakat, Tax and Customs Authority (ZATCA) has determined the criterion of selecting targeted establishments in the eighth group for applying Integration Phase of e-invoicing. ZATCA explained that the eighth group included all establishments with revenues subject to VAT, amounting to SAR 40 million during 2021 or 2022.
ZATCA also declared that it will inform all targeted establishments in the eighth group in preparation of the integration of e-invoicing systems at these establishments along with Fatoora Platform starting from 1 March 2024.
ZATCA added that the second phase (Integration Phase) includes more requirements than the first phase (Generation Phase), such as linkage of e-invoicing systems of taxpayers with Fatoora Platform and issuance of e-invoices based on a specific formula, and inclusion of a number of additional elements in the invoice. ZATCA also highlighted that the obligation of the second phase (Integration Phase) will be implemented gradually and under groups, noting that ZATCA shall inform the subsequent groups directly at least 6 months before the determined date for integration.
ZATCA indicated that the second phase of e-invoicing comes as an extension of the economic and digital transformation witnessed by the Kingdom, integrating the success achieved during the first phase of e-invoicing application that brought about numerous positive outcomes, the most prominent of which is raising the level of customer protection throughout the Kingdom, commending the great awareness that it sensed from taxpayers and their quick response in implementing the first phase of the project.
It is noteworthy that the first phase of the e-invoicing (Generation Phase) entered into implementation on 4 December 2021, committing taxpayers subject to e-invoicing regulation to completely stop using handwritten or computer printed invoices through text editing or number analysis software, and ensuring that a technical solution is in place for e-invoicing that is compatible with the ZATCA requirements. It also ensures issuance and archiving of e-invoicing with all elements including QR code along with other requirements.
