Explore the latest Wave 19 updates for Saudi E-Invoicing Phase 2 by ZATCA. Stay compliant and streamline your invoicing processes efficiently!
The Saudi E-Invoicing Phase 2: New Wave 19 Updates by ZATCA has made another leap towards digital transformation in the Kingdom of Saudi Arabia. First announced by the Zakat, Tax and Customs Authority (ZATCA) on January 15, 2025, this 19th new wave is for all taxpayers with revenues from VAT-subjected sales exceeding SAR 1.75 million in either 2022 or 2023. These taxpayers must now connect fully with the FATOORA platform of ZATCA by the deadline of September 30, 2025. This phase of the e-invoicing initiative aims to improve tax compliance, transparency, and seamless electronic invoice exchange between businesses and the tax authority. The introduction of ZATCA approved e-invoicing in Saudi Arabia has almost the same role as curbing tax evasion and streamlining the invoicing process all businesses regardless of size.
E-invoicing, or FATOORA, in Saudi Arabia, is a system meant to digitize the entire invoicing process, replacing the paper invoice system with electronic formats that would create an efficient and transparent financial infrastructure. An e-invoice, after being created, is then electronically communicated between the buyer and seller, thereby eliminating manual entry errors and keeping transaction timelines fast. The system was established in two phases as part of wider goals of Saudi Arabia to improve tax collection efficiency, prevent commercial concealment, and enhance the ease of doing business.
The main features of e-invoicing in Saudi Arabia are:
The Integration Phase, or Phase 2, of the e-invoicing rollout lays down an extension of the fundamental requirements already put in place under Phase 1. While Phase 1 had its focus on the taxpayer’s generating e-invoices with compliance, the emphasis of Phase 2 is on integration of those solutions with ZATCA’s systems. This ensures that all issued invoices grow in compliance with the stipulated format and are thereby transmitted to the tax authority real-time.
The 19th wave under Phase 2 relates to taxpayers subjecting their revenue to VAT with an amount of SAR 1.75 million or more in either the year 2022 or 2023. The entities on the 19th Wave must fulfil a set of critical requirements to remain compliant:
Keeping these requirements would help to prevent any penalties and uninterrupted business operations in Saudi Arabia.
ZATCA has taken a phased approach to implement the e-invoicing system to provide businesses more time to prepare. All waves receive a minimum of six months’ notice before the integration date deadline so companies can make necessary adjustments on their systems and processes. This gradual rollout ensures minimal disruptions while also providing support for businesses to transition smoothly.
The 19th wave, with a deadline of September 30, 2025, is part of this orderly approach. Businesses should proceed without delay, as early integration safeguards compliance and lessens the risk of any technical issues closer to the deadlines.
Advent of e-invoicing concomitantly benefits businesses and the government:
The recent Saudi E-Invoicing Phase 2: New Wave 19 Updates by ZATCA mark yet another turning point in the kingdom’s digital tax compliance journey. The new deadline is September 30, 2025, under which businesses categorized as part of the new 19th wave should also ensure this early integration with the FATOORA platform of ZATCA. In fact, a ZATCA approved e-invoicing in Saudi Arabia is not only a legal requirement but also a procedure to better business operations and achieve improved accuracy of data and reduced manual errors.
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