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ZATCA announces wave 8 of Phase 2, E-invoicing, in Saudi Arabia
December 27, 2024 ZATCA E-invoicing 0

Wave 8 is for companies registered under VAT whose revenue was above 40 million Saudi Arabian Riyals in the financial year 2021-2022.

Wave 8 Deadline:

All eligible businesses will have to integrate their electronic invoice systems into Fatoora by 1st march 2020.

Phase 2 Compliance Requirements

ZATCA highlights these obligations in Phase 2:

  • Integrating electronic invoicing with Fatoora platform.
  • Add additional mandatory fields to your invoice
  • All electronic invoices must follow the prescribed format.

ZATCA ensures that businesses are notified at least six months in advance of being included in the phase. This gives businesses sample time to prepare.

Previous waves in Phase 2

ZATCA has already announced the release of the following waves:

  • Wave 1: Businesses with a VAT registration and a turnover of more than SAR 3 billion in 2021 began integration on January 1, 2023.
  • Wave 2: The turnover should be between SAR 500 million and SAR 3 billion in 2021. Such businesses will begin integration on July 1, 2023.
  • Wave 3: The required turnover is between SAR 250-500 million turnover in 2021-2022. Such businesses are required to comply by the 1st October 2023.
  • Wave 4: The revenue of businesses should be between SAR 150 million and SAR 250 million in 2021 or 202. They should begin to integrate on 1st November 2023.
  • Wave 5 – The turnover should be between SAR100 and SAR150 millions in 2021-2022 are required to comply from the 1st December 2023.
  • Wave 6 – Businesses with a turnover between SAR 70 million and SAR 100 million in 2021 or 2021 began to integrate on January 1, 2024.
  • Wave 7 – Businesses with a SAR 50 million to SAR 70 million turnover in 2021 and 2020 began integration on 1st February 2024.

Phase 1 Achievements

On December 4, 2021, the first phase of Saudi electronic invoicing was implemented. It was a huge success. It increased consumer protection, raised awareness among taxpayers and mandated the adoption of ZATCA-compliant eInvoicing.

  • Eliminating handwritten invoices.
  • It is illegal to use text-editing software for invoice creation.
  • Add QR codes to invoices and include essential information
  • Archive e-invoices and Credit or Debit notes properly.

This wave prepares businesses for E-Invoicing that improves transparency and paves the way for wave 9.