Saudi Arabia: E-invoicing Update June 2024

ZATCA Announces E-Invoicing Integration Phase for Group 12 Taxpayers

The ZAKAT, Tax and Customs Authority in Saudi Arabia, has recently unveiled the criteria for Group 12 taxpayers regarding the integration phase of e-invoicing.

This phase is crucial for the digital transformation of tax compliance in Saudi Arabia, streamlining the invoicing process for businesses and ensuring greater transparency and efficiency.

Who Falls Under Group 12?

Group 12 encompasses all taxpayers whose annual turnover exceeded SAR 10 million in the years 2022 and 2023. These taxpayers are mandated to connect their e-invoicing systems with the ZATCA platform, known as FATOORA, during the period from December 1, 2024, to February 28, 2025.

What Does This Integration Mean?

The second phase of e-invoicing involves the integration and linking of taxpayers’ e-invoicing systems with ZATCA’s centralized system, FATOORA. This step is essential to ensure that all invoices are electronically processed and stored in a standardized format, facilitating real-time reporting and compliance.

Notification Process

ZATCA will notify all businesses that meet the criteria for Group 12, ensuring they are prepared to commence the integration within the specified timeline.

Comprehensive Timeline for All Taxpayers

The integration phase is part of a broader rollout strategy that has been systematically organized into several groups based on the annual turnover of businesses. Below is the detailed timeline for each group:

• Group 1: Sales exceeding SAR 3 billion in 2021
  • Integration period: January 1, 2023 – June 30, 2023
• Group 2: Sales exceeding SAR 500 million in 2021
  • Integration period: July 1, 2023 – December 31, 2023
• Group 3: Sales exceeding SAR 250 million in 2021 or 2022
  • Integration period: October 1, 2023 – February 1, 2024
• Group 4: Sales exceeding SAR 150 million in 2021 or 2022
  • Integration period: November 1, 2023 – February 29, 2024
• Group 5: Sales exceeding SAR 100 million in 2021 or 2022
  • Integration period: December 1, 2023 – March 31, 2024
• Group 6: Sales exceeding SAR 70 million in 2021 or 2022
  • Integration period: January 1, 2024 – April 30, 2024
• Group 7: Sales exceeding SAR 50 million in 2021 or 2022
  • Integration period: February 1, 2024 – May 31, 2024
• Group 8: Sales exceeding SAR 40 million in 2021 or 2022
  • Integration period: March 1, 2024 – June 30, 2024
• Group 9: Sales exceeding SAR 30 million in 2021 or 2022
  • Integration period: June 1, 2024 – September 30, 2024
• Group 10: Sales exceeding SAR 25 million in 2022 or 2023
  • Integration period: October 1, 2024 – December 31, 2024
• Group 11: Sales exceeding SAR 15 million in 2022 or 2023
  • Integration period: November 1, 2024 – January 31, 2025
• Group 12: Sales exceeding SAR 10 million in 2022 or 2023
  • Integration period: December 1, 2024 – February 28, 2025

By adhering to this structured timeline, ZATCA aims to ensure a smooth and efficient transition to the e-invoicing system, ultimately benefiting both businesses and the government through improved tax compliance and streamlined financial operations.

Stay tuned for further updates and notifications from ZATCA as the integration dates approach. It is essential for all affected businesses to prepare their systems and processes to meet the upcoming requirements and deadlines.

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