Saudi Arabia: Mandatory e-invoicing for taxpayers with revenue above SAR 375,000

The Zakat, Tax and Customs Authority (ZATCA) on September 26, 2025, announced the criteria for the 24th 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 24^th group will include taxpayers with VAT-liable revenues exceeding SAR 375,000 in 2022, 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 begin no later than June 30, 2026.

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, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Ramon Frias | ramonfrias@kpmg.com