About Corporate tax

The Zakat, Tax, and Customs Authority (ZATCA) has recently published a notification in which it lays down criteria for the selection of establishments to be targeted for e-Invoicing in the Kingdom of Saudi Arabia as part of the fourth wave of the "Integration Phase".

As per the ZATCA update, the fourth wave of e-Invoicing Phase 2 is scheduled to begin on November 1, 2023, with taxpayers subject to VAT and with revenue exceeding 150 million SAR in 2021 or 2022 required to integrate their e-invoicing solution with FATOORAH Platform in order to comply with this requirement.

The fourth wave of e-Invoicing Phase 2 is scheduled to begin on November 1, 2023

ZATCA said it will notify all the targeted establishments that they will be able to proceed to the second stage at least six months prior to their linkage and integration phase.

It was noted by the authority that the second phase would require additional requirements, also referred to as the generation phase, and that it would be implemented gradually and in groups.

ZATCA e-Invoicing Phase 2 was introduced on January 1, 2023, introducing additional requirements for organizations with turnovers over 3 billion SAR generating e-Invoices.

During the second wave of the integration phase of e-invoicing, which is planned to begin on July 1, 2023, the limit was further reduced to 500 Million SAR in order to facilitate the smooth transition to e-invoicing.

Launched on Dec. 4, 2021, the first stage obliges taxpayers to stop generating handwritten invoices or computer-generated invoices through text editing software.