Saudi Arabia: Ninth wave of e-invoicing applicability
Criteria for selecting targeted taxpayers in ninth wave for implementing “integration phase” of e-invoicing announced
“Integration phase” of e-invoicing announced
The Zakat, Tax and Customs Authority (ZATCA) on 17 November 2023 outlined the criteria for the ninth group of taxpayers required to comply with the second phase of the electronic invoicing (e-invoicing) system implementation—part of ZATCA's initiative to modernize the tax system and enhance compliance.
The ninth group will include taxpayers with revenues subject to value added tax (VAT) exceeding SAR 30 million in 2021 or 2022. The second phase, also known as the integration phase, involves integrating taxpayers’ e-invoicing solutions with the “Fatoora platform.” The mandate for this group will begin on 1 June 2024.
ZATCA clarified that this phase will necessitate issuing e-invoices in a specific format and adding extra fields to the invoice. Given the phased approach, ZATCA will provide taxpayers with a six-month notice before their compliance date. This phase also introduces additional requirements for storing e-invoices, including the QR code.
ZATCA urges taxpayers to prepare for the second phase of e-invoicing implementation and to seek authority guidance if necessary. The e-invoicing system compliance is obligatory, and non-compliance may lead to penalties.
For further information, please contact a KPMG tax professional.
Kathya Capote Peimbert | kcapotepeimbert@kpmg.com
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