Saudi tax authority announces revenue criteria for 4th wave of e-invoicing
Taxpayers who are subject to value-added tax exceeding SR150 million ($39.9 million) during the year 2021 or 2022 are required to integrate their e-invoicing systems with the Fatoora platform, stated the Zakat, Tax, and Customs Authority.
Fatoora is an electronic invoicing project in Saudi Arabia that is applicable to business-to-business, business-to-consumer and business-to-government transactions.
This comes as the tax authority announced the revenue figure as the criteria for selecting establishments in the fourth wave of e-invoicing Phase Two which is scheduled to commence on Nov. 1, 2023.
ZATCA said it will notify all the targeted establishments that they will be able to proceed to the second stage at least six months prior to their linkage and integration phase.
The authority noted that the second phase calls for additional requirements, also referred to as the generation phase, and that it will be done gradually and in groups.
Some of the key requirements in the second stage include linking the electronic billing system of taxpayers with the Fatoora platform, and issuing electronic invoices based on a specific formula.
According to the authority, the implementation of the second phase, referred to as the “Integration Phase,” of the e-invoicing project began on Jan. 1, 2023, with the selected taxpayers in the first wave.
Taxpayers in the first wave were selected based on the revenue subject to VAT for the year of 2021 exceeding SR3 billion.
Launched on Dec. 4, 2021, the first stage obliges taxpayers to stop generating handwritten invoices or computer-generated invoices through text editing software.
This comes as the tax authority announced the revenue figure as the criteria for selecting establishments in the fourth wave of e-invoicing Phase Two which is scheduled to commence on Nov. 1, 2023.
ZATCA said it will notify all the targeted establishments that they will be able to proceed to the second stage at least six months prior to their linkage and integration phase.
The authority noted that the second phase calls for additional requirements, also referred to as the generation phase, and that it will be done gradually and in groups.
Some of the key requirements in the second stage include linking the electronic billing system of taxpayers with the Fatoora platform, and issuing electronic invoices based on a specific formula.
According to the authority, the implementation of the second phase, referred to as the “Integration Phase,” of the e-invoicing project began on Jan. 1, 2023, with the selected taxpayers in the first wave.
Taxpayers in the first wave were selected based on the revenue subject to VAT for the year of 2021 exceeding SR3 billion.
Launched on Dec. 4, 2021, the first stage obliges taxpayers to stop generating handwritten invoices or computer-generated invoices through text editing software.