The 11th wave of phase 2 mandates VAT-registered companies with an annual revenue in excess of SAR 15 million from their fiscal years 2022 – 2023 to integrate their electronic invoicing systems with Fatoora by 1 November 2024.
Key Requirements for Phase 2
The second phase of e-invoicing introduces advanced methods of compliance:
- Integration Business must incorporate their e-invoicing software to the Fatoora portal.
- Advanced Invoice Fields The additional fields are required to be added to invoices.
- Standardized Format E-invoices should be aligned with ZATCA’s standard format.
ZATCA makes sure that businesses are informed at minimum six months before the deadline for integration.
Summary of Waves Under Phase 2
| Wave | Turnover Range (SAR) | Integration Deadline |
| Wave 1 | more than three billion (2021) | 1st January 2023 |
| Wave 2 | 500 million-3 billion (2021) | 1st July 2023 |
| Wave 3 | 500-250 million (2021/2022) | 1st October 2023 |
| Wave 4 | between 150 to 250 millions (2021/2022) | 1st November 2023 |
| Wave 5 | between 100 to 150 million (2021/2022) | 1st December 2023 |
| Wave 6 | 70-100 millions (2021/2022) | 1st January 2024 |
| Wave 7 | between 50 to 70 million (2021/2022) | 1st February 2024 |
| Wave 8 | 40-50 millions (2021/2022) | 1st March 2024 |
| Wave 9 | 30- 40 million (2021/2022) | 1st June 2024 |
| Wave 10 | 25-30million (2022/2023) | 1st October 2024 |
| Wave 11 | more than 15 millions (2022/2023) | 1st November 2024 |
Highlights of Phase 1
In effect on 4 December 2021 the first phase of the law required VAT-registered firms located in Saudi Arabia to:
- Eliminate handwritten invoices.
- Do not use text-editing software on invoices.
- Adopt ZATCA-compliant e-invoicing solutions.
- Include QR codes as well as mandatory information in invoices.
- Securely archive e-invoices and associated notes.
Phase 1 has been crucial in improving consumer protection and increasing awareness of taxpayers and laying the groundwork for digital transformation in Phase 2.
Strategic Vision
ZATCA insists on the importance of phase 2 to the digital revolution in the country and economic expansion and builds on the successes of the initial phase. This initiative demonstrates Saudi Arabia’s dedication to creating an efficient and transparent tax system, thus paving the way for wave 12.