ZATCA Sets Selection Criteria For E-Invoicing Phase Among Saudi Businesses

The Zakat, Tax, and Customs Authority (ZATCA) has outlined the criteria for selecting establishments in the 15th group for the "linking and integration" phase of e-invoicing. This group includes businesses with revenues exceeding SAR 4 million subject to value-added tax during 2022 or 2023.

ZATCA will notify all targeted establishments in the 15th group to prepare for linking their e-invoicing systems with the "Fatura" system. The second phase, which involves linking and integration, will be implemented gradually and in groups. This phase includes additional requirements compared to the first phase, such as linking taxpayers' electronic billing systems with e-invoicing, issuing e-invoices based on a specific format, and including several additional elements in the invoice.

The authority will inform subsequent groups directly at least six months before their specified date for linking. This phased approach ensures a smooth transition for all involved parties.

ZATCA acknowledged the success of the first phase of electronic billing (e-billing), which was part of Saudi Arabia's economic renaissance and digital transformation. The initial phase achieved many positive results, most notably enhancing consumer protection across the Kingdom.

The authority praised taxpayers' awareness and quick response in implementing the project's first phase. This cooperation was crucial in achieving the desired outcomes.

With inputs from SPA