The Zakat, Tax, and Customs Authority announced that it will begin notifying establishments in the fourteenth group about integrating their electronic billing systems with the Fatura system starting February 1, 2025. This second phase of electronic invoicing involves additional requirements compared to the first phase, including linking electronic billing systems with Fatura, issuing invoices in a specific format, and adding extra elements to invoices. The implementation will be gradual and establishments will be notified at least six months in advance.
The second phase is part of Saudi Arabia’s ongoing economic and digital transformation, building on the success of the first phase, which started on December 4, 2021. The first phase required taxpayers to stop using handwritten or computer-generated invoices via text or spreadsheet programs and adopt a compatible electronic invoicing system that includes all necessary elements like QR Codes. The initial phase achieved significant consumer protection improvements and saw strong compliance from taxpayers.
