Targeted Timelines and Revenue Thresholds for Compliance with FATOORA
The Saudi Zakat, Tax, and Customs Authority (ZATCA) has unveiled the criteria for the 17th wave of its ongoing e-Invoicing (FATOORA) integration phase, marking another step in the Kingdom’s digital transformation. This phase introduces technical and business requirements for electronic invoices and solutions, requiring seamless integration with ZATCA’s systems.
A Phased Approach to e-Invoicing Compliance
Saudi Arabia’s e-Invoicing implementation is being executed in waves, each targeting specific taxpayer groups. Key milestones include:
- The first wave, launched on 1 January 2023, applied to taxpayers with VAT taxable revenue exceeding SAR 3 billion in 2021.
- Subsequent waves have progressively included taxpayers with lower VAT taxable revenue thresholds.
For the 17th wave, ZATCA has set a compliance deadline of 31 July 2025 for taxpayers whose VAT taxable revenue exceeded SAR 2.5 million in 2022 or 2023.
What the Integration Phase Entails
The integration phase requires businesses to meet specific e-Invoicing requirements, including:
- Adoption of compliant electronic invoicing solutions that align with technical standards.
- Seamless integration of invoicing systems with ZATCA’s FATOORA platform.
- Adherence to business and regulatory guidelines, ensuring accurate reporting and transparency.
Preparing for Compliance
With the announcement of the 17th wave, businesses falling under the new criteria should begin preparing for integration. This involves evaluating current systems, implementing compliant solutions, and ensuring readiness for the 2025 deadline.
The phased approach demonstrates Saudi Arabia’s commitment to fostering a streamlined and transparent tax ecosystem while giving businesses ample time to adapt.
