Criteria for selecting targeted taxpayers in 21st wave for implementing “integration phase” of e-invoicing announced
The Zakat, Tax and Customs Authority (ZATCA) announced the criteria for the 21st 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 21st group will include taxpayers whose VAT-liable revenues exceeded SAR 1.25 million in 2022 or 2023 or 2024. 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 November 30, 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 more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com
Ramon Frias | ramonfrias@kpmg.com