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ZATCA announces 17th Wave under Phase 2 of Saudi Arabia’s e-invoicing initiative. VAT registered firms with a revenue greater than the amount of SAR 2.5 million between 2022 and 2023 to integrate their e-invoicing system in with Fatoora until July 1st, 2025.

Phase 2 Requirements

Under the Phase 2 of this initiative, businesses are expected to:
  • Integrate e-invoicing systems with The Fatoora portal.
  • Add additional fields in invoices to ensure compliance with standards.
  • Issue e-invoices using a ZATCA compliant format.
ZATCA assures that companies are informed within six months prior to the deadline for integration to each of the waves.

Timeline of E-Invoicing Waves

Here’s a list of all the wave announcements in Phase 2.
  1. Wave 1 (From January 1st 2023): Businesses with turnover that exceeds SAR 3 billion by 2021.
  2. Wave 2 (From July 1st 2023): Businesses with turnovers between SAR 500 million to SAR 3 billion by 2021.
  3. Wave 3 (From October 1st 2023): Businesses with turnover that ranges between SAR 250 million to SAR 500 million. The year should be 2021 or 2022.
  4. Wave 4 (From November 1st 2023): Businesses with turnover of between SAR 150 million to SAR 250 million. The year should be 2021 or 2022.
  5. Wave 5 (From 1st December 2023): Businesses with turnover that range between SAR 100million and SAR 150 million. The year should be 2021 or 2022.
  6. Wave 6 (From January 1st 2024): Businesses with turnover of between SAR 70 million to SAR 100 million by 2021 or 2022.
  7. Wave 7 (From February 1st 2024): Businesses with turnover of between SAR 50 million to SAR 70 million by 2021 or 2022.
  8. Wave 8 (From March 1st 2024): Businesses with turnovers between SAR 40million and SAR 50 million by 2021 or 2022.
  9. Wave 9 (From 1 June 2024): Businesses with turnover of between SAR 30 million and SAR 40 millions in 2021 or 2022.
  10. Wave 10 (From 1 June 2024): Businesses with turnovers between SAR 25 million and 30 million by 2022 or 2023.
  11. Wave 11 (From 1 June 2024): Businesses with turnover that range between SAR 15 million to SAR 25 million by 2022 or 2023.
  12. Wave 12 (From 1 December 2024): Businesses with turnover of between SAR 10,000,000 and SAR 15 million by 2022 or 2023.
  13. Wave 13 (From January 1st 2025): Businesses with turnover between SAR 7 million and SAR 10 million by 2022 or 2023.
  14. Wave 14 (From February 1st 2025): Businesses with turnover ranging between SAR 5,000,000 and SAR 7 million by 2022 or 2023.
  15. Wave 15 (From March 1st 2025): Businesses with turnover that range between SAR 4 million to SAR 5 million by 2022 or 2023.
  16. Wave 16 (From April 1st 2025): Businesses with turnover of between SAR 3,000,000 and SAR 4 million. The year should be 2022 or 2023.
  17. Wave 17 (From July 1st 2025): Businesses with turnover between SAR 2.5 million and SAR 3million in 2022 or 2023.

Impact of Phase 2

Phase 2 helped to:
  • Increase the effectiveness of the digital transformation of the economy.
  • Improve transparency and the protection of consumers.
  • Reduce tax compliance burdens for companies.

The Success of Phase 1

First phase in Saudi Arabia’s electronic invoicing launched in December 4 2021 it brought significant advantages, such as:
  • The prohibition of invoices with handwritten or text-edited signatures.
  • The ZATCA mandates the use of electronic invoicing solutions.
  • It is required to have QR codes as well as other important details of the invoice.
  • Increased awareness and compliance with regard to taxpayers.

Conclusion

Wave 17 continues ZATCA’s efforts to promote technological advancement and economic expansion and paves the way for wave 18. Businesses are encouraged to ensure compliance, and make a more effective and transparent tax system.