The Zakat, Tax, and Customs Authority (ZATCA) has recently announced a significant development in the ongoing deployment of e-Invoicing across the Kingdom, marking a pivotal moment in the nation’s digital transformation journey. As we edge closer to the initiation of Wave 10 of the “Integration Phase” for e-Invoicing, ZATCA sets forth the criteria for selecting the targeted taxpayers for this phase, indicating a strategic move towards a more digitally inclusive economic landscape.
A New Threshold: The Selection Criteria for Wave 10
ZATCA delineates that the selection criteria for the tenth wave will encompass all taxpayers with VAT-relevant revenues exceeding 25 million Saudi Riyals during the fiscal years of 2022 or 2023. This threshold is a clear indicator of ZATCA’s aim to gradually incorporate entities of varying sizes into the digital fold, ensuring a comprehensive embrace of e-Invoicing across the economic spectrum.
Notifying the Targeted Taxpayers
In a move to ensure seamless transition and compliance, ZATCA has committed to notifying all targeted taxpayers in this wave to integrate their e-Invoicing solutions with the FATOORA Platform starting from 1 October 2024. This proactive approach underscores the authority’s dedication to providing ample preparation time for businesses to align their invoicing solutions with the new standards.
Phase Two: The Integration Phase
The Integration Phase, distinguished from its predecessor – the Generation Phase, introduces additional requirements. These include the integration of taxpayers’ e-Invoicing systems with ZATCA’s FATOORA platform, adherence to a specific e-Invoice format, and the incorporation of additional fields within the invoice. ZATCA emphasizes that this phase will unfold in waves, with each succeeding wave being notified at least six months prior to their scheduled integration date. This phased approach is designed to facilitate a smooth and orderly transition for all stakeholders involved.
Digital Transformation and Economic Development
The launch of Phase Two of e-Invoicing signifies more than just a regulatory shift; it represents a cornerstone of the Kingdom’s ambitious digital transformation and economic development goals. It is a testament to the successful implementation of Phase One of e-Invoicing, which commenced on December 4, 2021. This earlier phase set the foundation by mandating the cessation of handwritten and computer-generated invoices through basic text editing or spreadsheet software, in favor of a standardized, QR code-inclusive e-Invoicing technical solution.
The Impact of Phase One: A Success Story
The positive outcomes of Phase One have been noteworthy, achieving an elevated level of consumer protection within the Kingdom. This success is attributed to the heightened awareness and swift adoption of e-Invoicing practices by taxpayers, reflecting the collective commitment to advancing the Kingdom’s digital infrastructure.
Looking Forward
As we move forward with the implementation of the Integration Phase, the focus remains on leveraging technology to enhance economic efficiency, transparency, and consumer protection. The journey of e-Invoicing in the Kingdom is a clear reflection of the broader vision for a digitally empowered future, driving economic growth and innovation.
ZATCA’s strategic planning and phased implementation of e-Invoicing highlight a future-oriented approach to governance and economic management, promising a more streamlined, transparent, and digitally advanced marketplace. As taxpayers and businesses prepare for the upcoming wave, the path laid out by ZATCA paves the way for a digitally inclusive economic environment, setting a benchmark for digital transformation initiatives worldwide.
