The Zakat, Tax, and Customs Authority (ZATCA) has determined the criteria for selecting the targeted taxpayers in the Twenty-Second Wave for implementing the Integration Phase of E-invoicing. The Twenty-Second Wave includes all taxpayers whose revenues subject to VAT exceeded SAR 1 Mn during 2022, 2023, or 2024.

 

Moreover, ZATCA explained that it will notify all targeted taxpayers in the Twenty-Second Wave to integrate their E-invoicing solutions with the Fatoora Platform no later than 31 December 2025.

 

ZATCA has stated that Phase Two (Integration Phase) requires additional requirements compared to Phase One (Generation Phase), the key requirement being integrating taxpayers’ E-invoicing solutions with ZATCA's Fatoora platform, issuing E-invoices in a specific format, and including additional fields in the invoice. Furthermore, Phase Two (Integration Phase) of E-invoicing will take place gradually in waves, and ZATCA will inform each wave at least six months before its integration date.

ZATCA has noted that the launch of Phase Two of E-invoicing is part of the Kingdom’s economic development and digital transformation efforts. It is also a continuation of the success story that began with Phase One, which has yielded positive results, most notably raising the level of consumer protection in the Kingdom, demonstrating the high level of taxpayer awareness, and highlighting their swift compliance with the implementation of Phase One (Generation Phase).

 

It is worth mentioning that Phase One (Generation Phase) of E-invoicing was introduced on 4 December 2021, requiring taxpayers subject to the E-invoicing Regulation to stop generating handwritten invoices or computer-generated invoices using text editing or spreadsheet software. The regulation ensures that a compliant E-invoicing solution is in place, allowing for the generation and storage of E-invoices with all required fields, including the QR code and other mandated elements.