KSA: The second wave of e-invoicing integration phase
As announced by ZATCA, the second wave of the integration phase will affect all taxpayers who generated a taxable turnover that exceeded half a billion SAR (approximately 133 million USD) in 2021.
The E-invoicing Regulations in Saudi Arabia were released on 28 May 2021 and was divided into two phases:
The first phase (Generation Phase) has shown positive results, including improved consumer protection and increased compliance among taxpayers. Thus, the goal of the second phase (Integration Phase) is to further support the economic development and digital transformation of the Kingdom of Saudi Arabia (KSA).
Phase Two of E-invoicing will include additional requirements for taxpayers and require them to:
- Prepare a clearance for Tax Invoices (debit and credit notes are included), and
- Report transactions within 24 hours for issued Simplified Tax Invoices (debit and credit notes still included).
Additionally, the phase will be implemented in stages and will provide six months’ notice before the integration date for each stage.
| Stages under Phase 2 of E-invoicing | Effectivity Date |
| Wave 1- Businesses registered under KSA with more than SAR 3 billion turnovers in 2021 | 1 January 2023 |
| Wave 2- VAT registered businesses in KSA with more than SAR 500 million turnovers in 2021 | 1 July 2023 |
All entities registered for VAT in Saudi Arabia, as well as third parties issuing invoices on behalf of taxable individuals are required to use e-invoicing. The regulations for VAT tax invoices, credit notes, and debit notes also apply to e-invoices.
Source: zatca.gov.sa
