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ZATCA The announcement of the Wave 15 in Stage 2 of Saudi Arabia’s electronic invoicing
January 17, 2025 ZATCA E-invoicing 0

The Zakat, Tax, and Customs Authority (ZATCA) has released the wave 15 under phase 2 of Saudi Arabia’s e-invoicing program. Entities registered for VAT with an annual turnover that exceeds SAR 4 million in the year 2022 or 2023 must fall under wave 15.  The taxpayers must integrate their e-invoicing solutions with the Fatoora platform by March 1 2025.

Key Phase 2 Requirements

ZATCA has defined the additional requirements required for the Phase 2 conformity:

  • Integration of e-invoicing services in conjunction with The Fatoora portal.
  • Inclusion of mandatory fields in electronic invoices.
  • Electronic invoices issued in the format prescribed by ZATCA format.

ZATCA notifies businesses of their participation in a wave six months prior to the deadline for integration.

Summary of Announced Waves Under Phase 2

  1. Wave 1: Turnover over SAR 3 billion by 2021, and fully integrated on January 1, 2023.
  2. Wave 2: Turnover in the range of SAR 500million and SAR 3 billion by 2021 and integrated by the 1st of July 2023.
  3. Wave 3: The turnover ranges between SAR 250 million and SAR 500 million in 2021 and 2022, with integration taking place on October 1, 2023.
  4. Wave 4: Turnover between SAR 150 million and SAR 250 million in 2021-2022. Integration by November 1, 2023.
  5. Wave 5: The turnover between SAR 100 million to SAR 150 million by 2021 and 2022, Integration before December 1, 2023.
  6. Wave 6: Turnover in the range of SAR 70 million to SAR 100 million by 2021 or 2022 and integrated on January 1, 2024.
  7. Wave 7: Turnover from SAR 50 millions as well as SAR 70 million by 2021 or 2022 and integrated before February 1, 2024.
  8. Wave 8: Turnover between SAR 40 million and SAR 50 million by 2021 and 2022. Integration by March 1, 2024.
  9. Wave 9: The turnover is from SAR 30 million to SAR 40 million by 2021 and 2022, which will be integrated on June 1, 2024.
  10. Wave 10: Turnover ranging from SAR 25 to SAR 30 million by 2022 and 2023, which will be integrated before June 1, 2024.
  11. Wave 11: Amount of turnover from SAR 15 and SAR 25 million by 2022 and 2023, which will be integrated before June 1, 2024.
  12. Wave 12: Turnover in the range of SAR 10 and SAR 15 million by 2022 and 2023. Integration before December 1, 2024.
  13. Wave 13: Turnover from SAR 7 millions to SAR 10 million by 2022 or 2023 incorporated on January 1, 2025.
  14. Wave 14: Turnover between SAR 5 million to SAR 7 million by 2022 or 2023 and integration by February 1, 2025.
  15. Wave 15: Amount of turnover above 4 million SAR in 2022 or 2023. Integration before March 1st, 2025.

The Impact of E-Invoicing on Saudi Arabia

ZATCA highlights that Phase 2 of eInvoicing aids in the country’s digital transformation and economic expansion. Following the successes of Phase 1, Phase 2 will enhance transparency.

The law was implemented in December 4 2021 Phase 1 of the law mandated VAT registered companies to:

  • Remove handwritten and non-compliant computer generated invoices.
  • Adopt ZATCA-compliant e-invoicing systems.
  • Include QR codes as well as other fields of data in invoices.
  • Store e-invoices and associated note cards for credit and debit (CDNs).

The second phase aims to improve the efficiency of operations and ensure compliance with the announcement of wave 16.

Author

  • Muhammad Bilal is the Digital Marketing Team Lead at SowaanERP, where he spearheads demand generation strategies and digital growth initiatives for ERP solutions. With expertise in performance marketing, automation, and enterprise technology, he helps organizations streamline operations and drive measurable business outcomes.