The Zakat, Tax and Customs Authority (ZATCA) has set criteria for selecting targeted taxpayers in the twelfth wave of the E-invoicing "Integration Phase." This wave includes all taxpayers with VAT-subject revenues exceeding SAR 10 million in 2022 or 2023. ZATCA will notify these taxpayers to integrate their E-invoicing solutions with the Fatoora platform starting December 1, 2024.

Phase Two (Integration Phase) involves additional requirements compared to Phase One (Generation Phase), including integrating E-invoicing solutions with ZATCA's Fatoora platform, issuing E-invoices in a specific format, and including extra fields in invoices. This phase will roll out gradually in waves, with ZATCA informing each wave at least six months in advance.

ZATCA targets taxpayers with VAT revenues over SAR 10 million for E-invoicing integration from December 1, 2024.

The launch of Phase Two supports the Kingdom's economic development and digital transformation, building on the success of Phase One, which enhanced consumer protection and saw high compliance from taxpayers. Phase One, which started on December 4, 2021, required taxpayers to replace handwritten or text-editing software-generated invoices with a compliant E-invoicing solution that includes necessary fields like QR codes.