Saudi Arabia: Fourth wave of e-invoicing applicability

Beginning 1 November 2023, taxpayers with revenues subject to VAT exceeding SAR 150 million must comply with phase 2 of the mandate

Beginning 1 November 2023

The Zakat, Tax and Customs Authority (ZATCA) on 28 April 2023 announced the fourth wave for implementing phase 2 of the electronic invoicing (e-invoicing) mandate. Beginning 1 November 2023, taxpayers with revenues subject to value added tax (VAT) exceeding SAR 150 million for the year 2021 or 2022 must comply with phase 2 of the mandate.

Phase 2 consists of integrating taxpayer e-invoicing solutions with ZATCA’s Fatoora platform, including additional data fields, and complying with the specified format. As the phase 2 implementation continues in waves, ZATCA will continue notifying taxpayers of their mandatory compliance at least six months in advance.

ZATCA indicated that the implementation of this new phase comes as a continuation of the process of deployment of the e-invoicing mandate since 4 December 2021, when the first phase of e-invoicing was implemented. That phase consisted of prohibiting selected taxpayers from the use of paper invoices or computer-generated invoices through text editing software, and instead requiring use of a software solution that complies with the conditions established in the technical documentation released by the ZATCA.

For prior coverage on the third wave rollout, read TaxNewsFlash.

For more information, contact a KPMG tax professional:

Kathya Capote Peimbert |

Lauren Tallman |



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