Wave 4 Integration Criteria by ZATCA for E-Invoicing

The Zakat, Tax, and Customs Authority (ZATCA) has established the selection criteria for taxpayers in the fourth wave of implementing the "Integration Phase" of E-invoicing. This phase requires VAT-registered taxpayers with revenues exceeding 150 million Saudi Riyals in 2021 or 2022 to integrate their e-invoicing solutions with ZATCA's platform (FATOORA) by November 1, 2023.

ZATCA has outlined the requirements for the Integration Phase, which includes integrating e-invoicing solutions with FATOORA, issuing e-invoices in a specific format, and adding extra fields to the invoice. This phase will take place in waves, with at least six months' notice given to the following waves.

ZATCA considers the Integration Phase part of the Kingdom's economic development and digital transformation, following the success of Phase One, which increased consumer protection. Taxpayers responded swiftly to the implementation of Phase One (Generation Phase), which prohibited generating handwritten or computer-generated invoices through text editing software, and required a technical solution for E-invoicing that meets the necessary requirements. E-invoices with the required fields, including QR codes, must also be generated and stored.