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ZATCA announces wave 7 of Phase 2 of Saudi Arabia’s E-Invoicing System
December 24, 2024 ZATCA E-invoicing 0
The Zakat, Tax and Customs Authority announces wave 7 of electronic invoicing for VAT registered businesses with a turnover of SAR 50 million in 2021or 2022.

Wave 7 Integration Deadline

Wave 7 tax payers must integrate their electronic invoice solutions in the Fatoora Portal before Feb. 1, 2024.

Phase 2 Compliance Requirements

ZATCA has provided additional compliance requirements for Phase 2:
  • Integration of e-invoicing into the Fatoora Portal.
  • Incorporate mandatory fields in invoices according to regulations.
  • This format is used for electronic invoices.
ZATCA notifies all affected businesses at least six months before the deadline for integration.

Timeline for Announced Waves

ZATCA has launched the following waves during Phase 2:
  • Wave 1: Businesses with a revenue of more than 3 billion SAR in 2021 were required to implement the Fatoora Portal by January 1, 2023.
  • Wave 2: Companies with revenues between 500 millions SAR and 3 billion SAR by 2021 were required to be integrated before July 1, 2023.
  • Wave 3: Taxpayers with a sales per annum exceeding SAR 250 million but not exceeding SAR 500 million in the tax year 2021 or 2022need to integrate by 1st of October 2023.
  • Wave 4: Companies must integrate by 1st December 2023 having revenues between 150 and 250 millions SAR in 2021.
  • Wave 5: Those taxpayers with a turnover that exceeds SAR 100 million but is less than SAR 150 million in either 2021 or 2022 have until 1st December 2023 to integrate.
  • Wave 6: Companies that will have revenues between 70 to 100 million SAR in 2021 or 2022 must be integrated by January 1, 2024.
  • Wave 7 : All business entities operating in KSA and making more than $50 million SAR by 2021, or 2022, must be connected to the system before February 1st, 2024.

Building on Phase 1’s Success

ZATCA views Phase 2 as a continuation of phase 1, (Generation phase),, which was implemented on December 4, 2021.

Highlights from Phase 1

Phase 1, which required VAT-registered taxpayers to:
  • Discontinue handwritten invoices.
  • Instead of using (a text editor), can be used to create invoices.
  • Implement a ZATCA-compliant e-invoicing solution.
  • Use key elements like QR codes in invoices.
  • Archive invoices and debit and credit notes (CDNs),.
ZATCA emphasized Phase 1 for its significant improvements in consumer protection and compliance awareness among taxpayers. The Phase 2 expansion by ZATCA of its E-invoicing System aims to promote the digital transformation and economic development in Saudi Arabia as well as create a transparent and efficient tax ecosystem. It paves the way for wave 8.