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Asmaa Ali | by NTD’s Tax Technical Knowledge Services group Carolyn Wright, legal editor.

Ali Almahroos, Indirect Tax | & Young LLP (United States), Middle East Tax Desk, New York.

Sanjeev Fernandez, Saudi Arabia Indirect Tax Leader | & Young - Middle East, Bahrain.

Adrian Smith, Indirect Tax | Mohsin Rehmani, Indirect Tax | & Young Professional Services (Professional LLC), Al Khobar.

Mohammed Bilal Akram, Indirect Tax | Peter Dylewski, Indirect Tax | & Young Professional Services (Professional LLC), Jeddah.

Aamer Bhatti, MENA Indirect Tax Leader | & Young Professional Services (Professional LLC), Riyadh.

Taxpayers who do not fall within the first six waves of Phase 2 e-invoicing integration should monitor future announcements from the ZATCA on the integration timeline period applicable to them in subsequent waves.įor additional information with respect to this Alert, please contact the following: Taxpayers should comply with the Phase 2 requirements in line with the e-invoicing regulation to preclude the possible imposition of penalties. Resident businesses should comply with the obligations of Phase 2 e-invoicing integration based on the ZATCA notification and undertake the relevant steps in making the required changes in their information technology systems. The ZATCA has already notified resident businesses falling under the above waves to comply with Phase 2 of e-invoicing within their applicable timelines.īased on the latest announcements, the ZATCA will begin notifying taxpayers who fall within the sixth wave of Phase 2 e-invoicing integration to go live within the period between 1 January 2024 and 30 April 2024, inclusive of both dates. Turnover of more than SAR100m during calendar year 2021 or 2022 Turnover of more than SAR150m during calendar year 2021 or 2022 Turnover of more than SAR250m during calendar year 2021 or 2022 Turnover of more than SAR500m up to SAR3b during calendar year 2021 Turnover of more than SAR3b during calendar year 2021 The criteria and timelines for the first five waves, which were previously announced, are: This phase is being implemented in waves.

Phase 2, effective from 1 January 2023, mandates integration of a taxpayer's system with the ZATCA, along with the transmission of e-invoices and e-notes to the ZATCA.

Phase 1, effective from 4 December 2021, mandates generation of e-invoices and e-notes, including related processing and record keeping.

E-invoicing in Saudi Arabia is being implemented in two phases: On 4 December 2020, the ZATCA introduced e-invoicing in Saudi Arabia, releasing the E-Invoicing Regulation.

(69877) dated AH, which was published in the Official Gazette on 16 June 2023, and mentions that the taxpayers coming under the sixth wave should comply with the Phase 2 e-invoicing requirements between 1 January 2024 and 30 April 2024, inclusive of both dates. The ZATCA will notify the impacted taxpayers in preparation for linking and integrating their electronic invoicing systems with the ZATCA's e-invoicing platform (Fatoorah).įurther, the ZATCA Governor has issued Decision No. On 16 June 2023, the Saudi Arabia Zakat, Tax and Customs Authority (ZATCA) announced on its website that taxpayers resident in Saudi Arabia, with a taxable turnover exceeding SAR70m during calendar year 2021 or 2022 will fall within the sixth wave of Phase 2 e-invoicing integration and should comply with the Phase 2 requirements. Taxpayers resident in Saudi Arabia, with a taxable turnover above SAR70m during the calendar year 2021 or 2022, should comply with the Phase 2 e-invoicing requirements that are effective from 1 January 2024.

The Saudi Arabia Zakat, Tax and Customs Authority has announced the criteria for taxpayers to be included in the sixth wave of Phase 2 e-invoicing integration.

Saudi Arabia announces sixth wave of Phase 2 e-invoicing integration