Type: Legislation
Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) announced the criteria for the seventh wave of e-invoicing implementation. This phase, also known as “Phase 2,” targets taxpayers with VAT-subject revenues exceeding 50 million Saudi Riyals during 2021 or 2022. The mandate requires integration with the “FATOORA platform” and begins from 1 February 2024 until no later than 31 May 2024. Ensure compliance, as failure to comply may lead to penalties. Seek guidance from ZATCA for a smooth transition to e-invoicing. The confirmed waves so far include:
7th wave Feb 2024 – taxpayers with an annual income between SAR 50 million and SAR 70 million
6th wave Jan 2024 – taxpayers with an annual income between SAR 70 million and SAR 100 million
5th wave Dec 2023 – taxpayers with an annual income between SAR 100 million and SAR 150 million
4th wave Nov 2023 – taxpayers with an annual income between SAR 150 million and SAR 250 million
3rd wave Oct 2023 – taxpayers with an annual income between SAR 250 million and SAR 500 million
2nd wave Jul 2023 – second wave businesses with a turnover above SAR 500m (approximately USD 13.3m). ZATCA should have already contacted the eligible businesses.
1st wave Jan 2023 – taxpayers with an annual turnover above SAR 3 billion.
Effective date: 1 February 2024
