Saudi Arabia: E-invoicing requirement extended to 12th group of taxpayers from December 1, 2024

Taxpayers with VAT-liable revenues exceeding SAR 10 million in 2022 or 2023

Taxpayers with VAT-liable revenues exceeding SAR 10 million in 2022 or 2023

The Zakat, Tax and Customs Authority (ZATCA) on May 24, 2024, announced the criteria for the 12th group of taxpayers required to comply with the second phase of the electronic invoicing (e-invoicing) system implementation. This is part of ZATCA's initiative to modernize the tax system and enhance compliance.

The 12th group will include taxpayers whose value added tax (VAT)-liable revenues exceeded SAR 10 million in 2022 or 2023. 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 commence on December 1, 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. It also reminds taxpayers that 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 |

Ramon Frias | 



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.