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
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 more information contact a KPMG tax professional:
Kathya Capote Peimbert | kcapotepeimbert@kpmg.com
Ramon Frias | ramonfrias@kpmg.com