Zakat, Tax, and Customs Authority (ZATCA) has announced the selection criteria for taxpayers in the sixth wave of implementing the "Integration Phase" of E-invoicing. According to ZATCA, the sixth wave includes all VAT-registered taxpayers whose revenues exceeded 70 million Saudi Riyals during either 2021 or 2022. These eligible taxpayers are required to integrate their e-invoicing solutions with the FATOORA platform starting from January 1, 2024.

ZATCA has outlined additional requirements for Phase Two (Integration Phase), which include integrating taxpayers' e-invoicing solutions with the FATOORA platform, issuing e-invoices in a specific format, and incorporating additional fields in the invoice. The implementation of Phase Two will occur gradually in waves, with ZATCA providing direct notifications to taxpayers at least six months prior to their Integration Date.

The 6th wave includes all VAT-registered taxpayers whose revenues exceeded 70 million Saudi Riyals during either 2021 or 2022

ZATCA views the launch of Phase Two as a crucial step in the economic development and digital transformation taking place in the Kingdom. It is seen as a continuation of the successful Phase One implementation of e-invoicing, which achieved positive outcomes, particularly in enhancing consumer protection. ZATCA has commended taxpayers for their strong awareness and swift response in implementing Phase One (the generation phase).

It should be noted that Phase One (Generation Phase) of E-invoicing was introduced on December 4, 2021. This phase requires taxpayers subject to the E-invoicing Regulation to cease generating handwritten or manually created invoices using text editing software. Instead, they must ensure the availability of a compatible technical solution for E-invoicing, generating and storing e-invoices with the required fields, including the QR code and other specified requirements.