The Zakat, Tax, and Customs Authority has outlined criteria for selecting businesses in the sixteenth group to implement the “linking and integration” phase of electronic invoicing. This group comprises establishments whose revenues subject to value-added tax exceed 3 million riyals in 2022 or 2023. These establishments will be notified and required to integrate their electronic billing systems with the Fatora system by April 1, 2025.
Additional requirements beyond the initial issuance and preservation stage are necessary in this second stage. These include linking electronic invoicing systems with a fatwa system, issuing invoices based on specific formulas, and including certain elements. The implementation of this phase will occur gradually and in groups, with the Authority informing subsequent groups at least six months before their connection date.
This phase is part of the Kingdom’s economic and digital transformation efforts, following the success of the first phase of electronic invoicing. The first phase, which began in December 2021, mandated the stopping of handwritten or computer-generated invoices via text editing programs, ensuring compliance with technical solutions for electronic invoicing and including all necessary elements, such as QR codes.
