The Zakat, Tax and Customs Authority specified the criteria for selecting the targeted establishments in the fifteenth group to apply the “linking and integration” phase of e-invoicing, where the Authority explained that the fifteenth group included all establishments whose revenues subject to value added tax exceed (4 million riyals) during 2022 or 2023.
The ZTA explained that it will notify all targeted establishments in the fifteenth group, in preparation for linking and integrating the electronic invoicing systems of VAT. The Authority explained that it will notify all targeted establishments in the fifteenth group, in preparation for linking and integrating the electronic invoicing systems of these establishments, with the (FATURA) system starting from March 1, 2025.
The Zakat, Tax and Customs Authority added that the second phase (the linking and integration phase) entails additional requirements from the first phase (the issuance and filing phase), most notably linking taxpayers' electronic invoicing systems with the Fatora system, issuing electronic invoices based on a specific format, and including a number of electronic invoices based on a specific format. and the inclusion of a number of additional elements in the invoice. It also clarified that the second phase (linking and integration) is done in the form of The Authority must inform the subsequent groups directly at least six months before the date set for linking.
The second phase of e-invoicing is an extension of the economic renaissance and digital transformation witnessed by the Kingdom, and a continuation of a success story that began with the first phase of the e-invoicing application, which achieved many positive results, most notably raising the level of consumer protection throughout the Kingdom, praising the great awareness of taxpayers and their quick response in applying the first phase of the project.
The ZTA pointed out that the second phase of e-invoicing comes as an extension of the economic renaissance and digital transformation witnessed by the Kingdom. It is noteworthy that the first phase of the e-invoicing project (the issuance and preservation phase) began its application on December 4, 2021, which obligates taxpayers subject to the e-invoicing regulation to completely stop using handwritten invoices or invoices written by computers through text editing programs or number analysis programs, and to ensure that there is a technical solution for electronic invoicing compatible with the Authority's requirements, in addition to ensuring that electronic invoices are issued and saved with all elements, including QR Code and other requirements.
The first phase of the e-invoicing project (the issuance and preservation phase) was initiated on December 4, 2021.
