The Zakat, Tax and Customs Authority has laid out criteria for selecting target establishments in the 10th group for implementing the “linking and integration” phase of electronic invoicing. This group includes establishments with revenues subject to value-added tax exceeding 25 million riyals during 2022 or 2023. Targeted establishments will be notified to integrate their electronic billing systems with the Fatora system starting October 1, 2024.
This second phase of electronic invoicing involves additional requirements compared to the first phase, such as linking taxpayers’ systems with a Fatoora portal and issuing invoices according to a specific formula. The obligation for this phase will be implemented gradually and in groups, with the Authority informing subsequent groups at least 6 months in advance.
This initiative reflects Saudi Arabia’s economic renaissance and digital transformation, building upon the success of the first phase which improved consumer protection. The first phase, focused on issuing and preserving electronic invoices, began on December 4, 2021. It required taxpayers to end using handwritten or computer-generated invoices not meeting the Authority’s standards and ensure compliance with all necessary elements, including QR codes.
