ZATCA Sets Criteria For Linking And Integration Phase Of E-Invoicing For Targeted Establishments

The Zakat, Tax, and Customs Authority (ZATCA) has outlined the criteria for selecting establishments in the 16th group for the "linking and integration" phase of electronic invoicing (e-invoicing). This group includes businesses with revenues exceeding SAR3 million subject to value-added tax during 2022 or 2023. Notifications will be sent to these establishments as they prepare to integrate their e-invoicing systems with the "Fatura" system.

The second phase, known as linking and integration, will be implemented gradually and in groups. This phase introduces additional requirements compared to the first phase, which focused on issuance and preservation. These new requirements involve connecting taxpayers' electronic billing systems with e-invoicing, issuing invoices based on a specific format, and including extra elements in the invoices.

ZATCA highlighted the success of the second phase of electronic billing as part of Saudi Arabia's economic growth and digital transformation. The initial phase of implementing electronic billing achieved several positive outcomes, notably enhancing consumer protection across the Kingdom. The authority commended taxpayers for their awareness and swift response in adopting the project's first phase.

Future groups will receive direct notifications from ZATCA at least six months before their scheduled linking date. This approach ensures that all targeted establishments have ample time to prepare for integrating their systems with the e-invoicing platform.

The authority's efforts are part of a broader initiative to modernise financial transactions within Saudi Arabia. By advancing digital solutions like e-invoicing, ZATCA aims to streamline processes and improve efficiency for businesses operating within the Kingdom.

This strategic move aligns with Saudi Arabia's vision of fostering a digitally advanced economy. As more businesses transition to electronic invoicing, it is expected that operational transparency and accuracy will significantly improve across various sectors.

With inputs from SPA