Saudi Arabia: Second wave of e-invoicing applicability
ZATCA announced the second wave for implementing e-invoicing
ZATCA announced the second wave for implementing e-invoicing
The Zakat, Tax and Customs Authority (ZATCA) on 23 December 2022, announced the second wave for implementing electronic invoicing (e-invoicing) from 1 July 2023. This wave will cover the taxpayers whose sales subject to value added tax (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 one, the taxpayers under wave two, beginning 1 July 2023, will 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, non-compliance may be subject to penalties.
The ZATCA also issued an updated e-invoicing detailed guideline in December 2022, which includes further details on integration with ZATCA’s Fatoora platform, failure scenarios and FAQs.
For more information, contact a KPMG tax professional:
Philippe Stephanny | +1 202 533 3082 | philippestephanny@kpmg.com
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