The Kingdom of Saudi Arabia continues its strides in digital transformation with the announcement of the 16th wave of Phase 2 e-Invoicing integration. This latest development, led by Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA), outlines the criteria and compliance requirements for taxpayers to be included in this wave.
Who is Impacted?
The new criteria targets resident taxpayers in Saudi Arabia who have a taxable turnover exceeding SAR 3 million during the calendar years 2022 or 2023. Businesses meeting this threshold must ensure that they comply with the Phase 2 e-Invoicing requirements by April 1, 2025.
What Does Phase 2 Involve?
Phase 2, also known as the Integration Phase, is more advanced than the initial generation phase of e- Invoicing. It requires eligible taxpayers to integrate their invoicing systems with ZATCA’s platform, ensuring real-time reporting, validation, and enhanced transparency of B2B and B2C transactions. Compliance will require implementing technical and procedural updates to align with ZATCA’s specific e-invoicing standards.
Preparing for Compliance
To ensure a smooth transition, businesses affected by this announcement should start evaluating their current invoicing systems and seek technical support if necessary. Companies that fall under the new criteria should work closely with e-invoicing solution providers to achieve seamless integration by the 2025 deadline.
Next Steps for Businesses
- Assess Eligibility: Confirm if your business falls under the new criteria (turnover > SAR 3 million in 2022 or 2023).
- Review Current Invoicing Systems: Make sure your systems are compatible with ZATCA’s e- Invoicing requirements.
- Seek Professional Guidance: Consider partnering with e-invoicing solution providers to streamline the integration process.
This wave is another major step in Saudi Arabia’s commitment to digitizing its tax and business processes, contributing to greater efficiency, transparency, and regulatory compliance in the Kingdom’s economic landscape.
For further information and updates, keep an eye on announcements from ZATCA as the compliance deadline approaches.
