Compliance updates - Saudi Arabia
Get the latest news and updates on e-invoicing, e-ordering, e-archiving and indirect tax regulatory requirements.
ZATCA further extends the scope of taxpayers for Phase 2 third wave
On 24 March 2023, ZATCA announced that the criteria for taxpayers required to comply with the Integration Phase requirements from 1 October 2023 have been established.
ZATCA announces taxpayers in the scope for Phase 2 second wave
The criteria for the taxpayers that must comply with the Integration Phase requirements from 1 July 2023 has been determined.
ZATCA extends the exemption period for tax-related penalties
To further help businesses mitigate the impact of the COVID-19 pandemic, ZATCA has prolonged the tax-related exemption from widescale of penalties and fines for an additional 6 months.
ZATCA launches E-Invoicing Subsidy Program
To ensure a successful implementation of e-invoicing requirements and to support the targeted taxpayers, ZATCA has initiated subsidizing e-invoicing solutions acquired by taxpayers and purchased after 4 December 2020 for VAT-registered taxpayers with an annual turnover of less than SAR 3 million (ca. EUR 800 000).
Latest releases and announcements from ZATCA
E-invoicing continues to make strides in Saudi Arabia. In a significant step towards digital transformation in the region, ZATCA has recently launched several important updates for taxpayers.
ZATCA has defined taxpayers required to comply with Phase 2 requirements as of 1 January 2023
ZATCA announced the criteria, based on which the taxpayers have been defined to comply with Phase 2 requirements of their e-invoicing mandate. The taxpayers falling within the thresholds will receive a corresponding notice from ZATCA.
ZATCA exempts taxpayers from widescale fines and financial penalties
To help businesses mitigate the economic impact of the global COVID-19 pandemic, ZATCA has announced a tax-related exemption from financial penalties for a six months period.
ZATCA announces new proposals and a testing environment for e-invoicing
With the kick-off of phase 2 approaching, ZATCA has updated the supporting documents for the e-invoicing regulations. More information is now given for some control requirements, technical specifications and procedural rules necessary to implement the provisions of the mandate.
ZATCA published a new decision that reclassifies VAT-related violations and penalties
The decision entitles new classifications with clear examples of how the penalties would be imposed for some violations of VAT law and e-invoicing rules.
ZATCA approved the amendments to the VAT executive regulations
The amendments were made effective by Cabinet Resolution No. (570) and will be enforced as of 4 December 2021. Few changes have been made to the draft version that went for public consultation earlier in October this year.
Clearance from 1 January 2023
– 4 December 2021: any structured format;
– 1 January 2023: UBL 2.1 KSA or Hybrid
Mandatory for Issuing:
Mandatory for Receiving:
– 6 years (standard assets)
– 11 years (moveable and intangible capital assets)
– 15 years (real estate)
In principle, not allowed
Fulfil the ZATCA e-invoicing mandate with Pagero
Visit our solution page to find out more about how you can comply with the ZATCA e-invoicing mandate by connecting to the Pagero Network.