ZATCA (Zakat, Tax, and Customs Authority) has announced the criteria for selecting the businesses targeted in the Sixteenth Wave of the e-invoicing integration phase. This wave will impact taxpayers whose VAT-liable revenues exceeded SAR 3 million in 2022 or 2023. These businesses must integrate their e-invoicing solutions with the FATOORA platform starting from April 1, 2025.
What does Wave 16 mean for businesses?
The Integration Phase of e-invoicing, also known as Phase Two, introduces new technical and compliance requirements. Businesses will need to align their e-invoicing solutions with ZATCA’s FATOORA platform and adhere to a specific e-invoicing format. Additional invoice details, such as particular fields, must also be included.
Phase Two is being rolled out gradually, with ZATCA notifying businesses at least six months before their integration deadline. This builds on the success of Phase One (the Generation Phase), launched in December 2021 and led to increased consumer protection and digitization across the Kingdom.
For businesses impacted by Wave 16, preparations should begin to ensure compliance with the new requirements by the April 2025 deadline. ZATCA will provide more details to the targeted taxpayers to help them integrate with FATOORA successfully.
Key takeaways
- Target group: businesses with VAT-liable revenues over SAR 3 million in 2022 or 2023.
- Requirements: integration with FATOORA, adoption of a new invoice format, and inclusion of additional details in invoices.
- Timeline: integration for Wave 16 begins on April 1, 2025.
preparation: businesses should review ZATCA guidelines and start preparing their e-invoicing solutions.
This new wave follows ZATCA’s earlier updates, including Wave 11, which targeted larger enterprises. For more details on previous waves, see our earlier post. The full press release is available here.
