The Zakat, Tax and Customs Authority has defined the selection criteria for selecting the targeted establishments in the 22nd group to apply the “linking and integration” phase of electronic invoicing.

The Zakat, Tax and Customs Authority. The Authority explained that the twenty-second group includes all establishments whose revenues subject to VAT exceed one million riyals during the years 2022, 2023 or 2024.

The Authority clarified that the twenty-second group includes all establishments whose revenues subject to VAT exceed one million riyals during the years 2022, 2023 or 2024. The Authority indicated that it will notify all targeted establishments in the twenty-second group, in preparation for linking and integrating the electronic invoicing systems of these establishments, with the “FATURA” system before December 31, 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 billing systems with the FATURA system, issuing electronic invoices based on a specific format, and including a number of additional elements in the invoice.

The Zakat, Tax and Customs Authority added that the second phase, ”the linking and integration phase,“ entails additional requirements from the first phase. <The second phase, ”Linking and Integration", will take place in a gradual and gradual manner, with the Authority informing the remaining 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 application of e-invoicing, 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 that is 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 "Issuance and Preservation Phase" began on December 4, 2021.