Zakat, Tax and Customs Authority (ZATCA), on 23 December 2022, announced the second wave for implementing E-invoicing Phase II from 1 July 2023. This wave will cover the taxpayers whose sales subject to VAT exceeded SAR 500 million for the year 2021.
The covered taxpayers in the second wave will be required to integrate their E-Invoice Generation Solution (EGS) with the ZATCA’s Fatoorah platform and generate additional fields in their database and on Tax invoices needed for integration and compliance features. Tax Invoices must be generated in XML format or a PDF/A-3 (with embedded XML).
Similar to wave 1, the taxpayers under wave 2, beginning 1 July 2023, would be given six months during which they can integrate their EGS with ZATCA’s Fatoorah portal to issue valid tax e-invoices. Effective 1 January 2024, the non-compliance may be liable to penalties.
Please refer to the announcement on the applicability of the second wave of E-invoicing Phase II (Arabic) through the link provided below:
https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_987.aspx
Alongside this, ZATCA issued the updated E-invoicing detailed guideline in December 2022, which includes further details on integration with ZATCA’s Fatoora platform, failure scenarios and FAQs. The same can be accessed through the link provided below:
Our teams are available to support your business in complying with the requirements of E-invoicing. For any additional information with respect to this alert, please get in touch with our tax team as follows:
Get in touch
Riyadh Office
Tariq Al Sunaid Head of Tax
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Ali Sainudheen Senior Director, Domestic Tax |
Salam Eido Senior Director, Domestic Tax
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Oleg Shmal Director, Head of Indirect Taxes |
Stefan El Khouri Senior Director, Head of Transfer Pricing
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Amr Alsaleh Director, Domestic Tax |
Jeddah Office
Faisal Tanvir Senior Director, Domestic Tax E: ftanvir@kpmg.com |
Muhammad Masood Director, Domestic Tax |
Fouad Yaman Director, Domestic Tax |
Anan Sijini Tax Director |
Khobar Office
Mohammad Kamran Sial Senior Director, Domestic Tax E: ksial@kpmg.com |
Mohamed Gouda Director, Domestic Tax
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Anil Bahl Director, Indirect Tax |