On June 27, 2025, the Zakat, Tax and Customs Authority (ZATCA) announced the criteria for selecting the “Twenty-Third” group of businesses for Phase Two of electronic invoicing—“Connect and Integrate.” This group includes all establishments with VAT-taxable revenue above SAR 750,000 in 2022, 2023, or 2024. ZATCA will notify all targeted businesses, which must integrate with the “Fatoora” platform by March 31, 2026.
Phase Two Highlights:
- Integration with ZATCA’s Fatoora platform
- Invoices must follow a specific electronic format
- Additional required invoice elements
- Gradual rollout with at least six months’ notice
Phase Two builds on the success of Phase One, which began on December 4, 2021. That phase required all VAT-registered taxpayers to stop using handwritten or basic computer-generated invoices and switch to a compliant e-invoicing system. ZATCA noted strong taxpayer engagement and highlighted improvements in consumer protection and digital efficiency across the Kingdom.
