Saudi Arabia Announces Criteria for 16th Group in E-Invoicing Integration Phase

| Image Credits: H.E. Eng. Suhail bin Mohammed Abanmi - Governor of Zakat, Tax and Customs Authority

Saudi Arabia´s Zakat, Tax, and Customs Authority (ZATCA) has outlined the criteria for selecting establishments that will be included in the 16th group for the upcoming "linking and integration" phase of the electronic invoicing (e-invoicing) system.

According to ZATCA, the 16th group comprises establishments whose revenues subject to value-added tax (VAT) exceeded SAR 3 million in 2022 or 2023. Targeted establishments within this group will be notified as the authority prepares to link and integrate their e-invoicing systems with the national "Fatura" system. This integration will begin on April 1, 2025.

GRADUAL IMPLEMENTATION OF THE SECOND PHASE

ZATCA emphasized that the second phase of e-invoicing, which involves linking and integrating electronic billing systems, will be implemented gradually and in groups. This phase introduces additional requirements beyond those of the initial phase, which focused on the issuance and preservation of invoices.

Key requirements of the linking and integration phase include:

• Connecting taxpayers' electronic billing systems to the e-invoicing platform.

• Issuing electronic invoices in a specific standardized format.

• Incorporating additional mandatory elements in each invoice.

The authority assured that each group would be notified at least six months in advance to allow for a smooth transition. Subsequent groups will be directly informed of their inclusion and respective timelines.

SUCCESS OF THE SECOND PHASE

ZATCA also highlighted the successful implementation of the second phase of electronic invoicing as part of Saudi Arabia's broader economic and digital transformation initiatives. The introduction of e-invoicing has led to several positive outcomes, including increased consumer protection across the Kingdom.

The authority praised the cooperation and awareness demonstrated by taxpayers during the first phase, which facilitated a smooth rollout and contributed to the overall success of the project. This early success sets a strong foundation for the continued development of the e-invoicing system as part of the Kingdom's digital evolution.

SOURCE/ RECOMMENDED READ: 

• ZATCA Sets Criteria for Linking and Integration Phase of E-Invoicing (spa.gov.sa)