SowaanERP

SowaanERP
Menu
Try its free
December 24, 2024 ZATCA E-invoicing 0

Wave 6 was announced by the Zakat, Tax, and Customs Authority for businesses having a turnover of 70 million SAR or more in 2021 and 2022.

Wave 6 integration deadline

Wave 6 taxpayers must integrate their electronic invoicing solutions into the Fatoora portal before January 1, 2024.

Key requirements for Phase 2 compliance

ZATCA has emphasized that the following additional requirements for Phase 2 compliance are important:

  • Integrating e-invoicing with ZATCA Fatoora Portal.
  • ZATCA regulations require that invoices include mandatory fields.
  • Issue of electronic invoices in format.

ZATCA assured taxpayers that announcements about phase-applicability would be made at least six months before the deadline for integration.

Timeline of Phase 2 waves

ZATCA has identified the following waves as part of Phase 2:

  1. Wave 1,The Fatoora portal was required for taxpayers with a turnover of more than 3 billion SAR by 2021.
  2. Wave 2,The integration of VAT-registered tax payers who had a turnover in 2021 between 500 million SAR and 3 billion SAR began on July 1, 2023.
  3. Wave 3, Taxpayers need to integrate the Fatoora portal if they have more than SAR 250 million and less than SAR 500 million in 2021 or 2022.
  4. Wave 4,Businesses that have a revenue between 150 million SAR and 250 million SAR for 2021 or SAR 250 millions must integrate the portal before December 1, 2023.
  5. Wave 5,Taxpayers must integrate the portal if their revenue lies between 100 million SAR and 150 million SAR for 2021 or SAR 2022.

Advancing economic development through e-invoicing

ZATCA stressed that phase 2 was pivotal in advancing Saudi Arabia’s economic and digital transformation. The initiative builds on the success of phase 1 (Generation) which was implemented on December 4th 2021.

During Phase 1, taxpayers who were VAT registered had to:

  • Discontinue handwritten invoices.
  • Use to create invoices instead of.
  • Adopt ZATCA-compliant e-invoicing solutions.
  • Include mandatory information such as QR Codes on their invoices.
  • Store Credit Debit Notes and E-invoices in a safe place.

The success of Phase 1

ZATCA reported Phase I enhanced protection of consumers, and increased awareness by taxpayers regarding the importance of compliance. The authority sees Phase 2 as an inevitable progression that will ensure continued transparency, accountability and efficiency in Saudi Arabia’s tax system.

ZATCA, by expanding the scope for electronic invoicing, is stimulating economic growth and setting the stage for wave 7  with a robust digital environment.