Saudi Arabia: Seventh wave of e-invoicing applicability
Criteria for selecting targeted taxpayers in seventh wave for implementing “integration phase” of e-invoicing announced
Seventh wave of e-invoicing applicability
The Zakat, Tax and Customs Authority (ZATCA) on 28 July 2023, announced the criteria for selecting the targeted taxpayers in the seventh wave for implementing the “integration phase” of electronic invoicing (e-invoicing).
According to the announcement, ZATCA clarified that the seventh wave included all taxpayers whose revenues subject to value added tax (VAT) exceeded 50 million Saudi Riyals during 2021 or 2022. The integration phase of e-invoicing is also known as the "Phase 2" of compliance and consists of integrating the e-invoicing solutions of the taxpayers with the “FATOORA platform.” For the seventh wave, this mandate will start from 1 February 2024 until no later than 31 May 2024.
ZATCA informed that this phase will also require taxpayers to issue e-invoices based on a specific format and include additional fields in the invoice. As this integration phase will take place in waves, ZATCA will notify taxpayers at least six months in advance of the specific date on which each taxpayer will be required to comply. This phase comes with additional requirements for storing e-invoices with the required fields, including the QR code.
ZATCA encourages taxpayers to prepare for the second phase of the e-invoicing implementation and to seek guidance from the authority if needed. The authority also reminds taxpayers that compliance with the e-invoicing system is mandatory and failure to comply may result in penalties.
For prior coverage, read TaxNewsFlash.
For more information, contact a KPMG tax professional:
Kathya Capote Peimbert | kcapotepeimbert@kpmg.com
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