Saudi Arabia: E-invoicing requirement extended to 16th group of taxpayers from April 1, 2025
ZATCA announced the criteria for the 16th group of taxpayers required to comply with the second phase of the e-invoicing system implementation.
The Zakat, Tax and Customs Authority (ZATCA) on September 27, 2024, announced the criteria for the 16th group of taxpayers required to comply with the second phase of the e-invoicing system implementation. This is part of ZATCA's initiative to modernize the tax system and enhance compliance.
The 16th group will include taxpayers whose value added tax (VAT)-liable revenues exceeded SAR 3 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 April 1, 2025.
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 | kcapotepeimbert@kpmg.com
Ramon Frias | ramonfrias@kpmg.com