Regulatory updates - Saudi Arabia

On 17 November 2023, ZATCA announced that all taxpayers whose revenues subject to VAT exceeded SAR 0,03 billion (ca. EUR 7 million) during 2021 or 2022 will fall under the scope of the new wave.

The above-mentioned taxpayer group must integrate their e-invoicing solutions with the FATOORA Platform starting 1 June 2024 until the end of September 2024. 

On 18 August 2023, ZATCA announced the new threshold for taxpayers required to comply with Phase 2 of the e-invoicing mandate in KSA as of 1 March 2024.

Taxpayers with revenues subject to VAT greater than SAR 0,04 billion (ca. EUR 10 million) will now be in the mandate scope as part of the eighth wave of Phase 2 (Integration Phase).

This next wave will begin on 1 March, and taxpayers will given time to comply with the new regulation until 30 June 2024.

The required participants for the seventh wave of Phase 2 (Integration Phase) are taxpayers with revenues subject to VAT greater than SAR 0,05 billion (ca. EUR 12.3 million).

This taxpayer group will have time until 31 May 2024 to adhere to the new regulation.

The Kingdom of Saudi Arabia has further extended requirements for taxpayers to adhere to the requirements for obligatory issuance of electronic invoices and integration to the FATOORA platform. The required participants for the sixth wave of Phase 2 (Integration Phase) are taxpayers with revenues subject to VAT greater than SAR 0,07 billion (ca. EUR 17 million).

This next wave is scheduled to commence as of 1 January 2024, and taxpayers will . Businesses fitting the given criteria should prepare to adhere to the new regulation.

Pagero continues to follow the Kingdom of Saudi Arabia’s progress in introducing electronic invoicing. Stay tuned for more updates in KSA.

The Kingdom of Saudi Arabia is further extending requirements for taxpayers to adhere to the requirements for obligatory issuance of electronic invoices and integration to the FATOORA platform. The required participants for the fifth wave of Phase 2 (Integration Phase) are taxpayers with revenues subject to VAT surpassing SAR 0,10 billion (ca. EUR 25 million). 

This next wave is scheduled to commence as of 1 December 2023, and taxpayers will have until 31 March 2024. Businesses fitting the given criteria should prepare to adhere to the new regulation.  

Pagero continues to follow the Kingdom of Saudi Arabia’s progress in introducing electronic invoicing. Stay tuned for more updates in KSA. 

The Kingdom of Saudi Arabia is further extending requirements for taxpayers to adhere to the requirements for obligatory issuance of electronic invoices and integration to the FATOORA platform. The required participants for the fouth wave of Phase 2 (Integration Phase) are taxpayers with revenues subject to VAT surpassing SAR 0,15 billion (ca. EUR 37 million).

This next wave is scheduled to commence as of 1 November 2023, and taxpayers will have until 29 February 2024. Businesses fitting the given criteria should prepare to adhere to the new regulation.

Pagero continues to follow the Kingdom of Saudi Arabia’s progress in introducing electronic invoicing. Stay tuned for more updates in KSA.

ZATCA (The Zakat, Tax and Customs Authority) has publicly announced the proposition of amending the controls, requirements, technical specifications, and procedural rules for implementing the provisions of the e-invoicing regulation.

The amendments that ZATCA is proposing include new functionalities regarding specifications for charges and advanced payments. ZATCA’s final decision is contingent upon their internal assessments and considering the comments and concerns of the public.

Pagero continues to monitor measures related to electronic invoicing regulations in KSA.

The Kingdom of Saudi Arabia is further extending for taxpayers to adhere to the requirements for obligatory issuance of electronic invoices and integration to the FATOORA platform. The required participants for the third wave of Phase 2 (Integration Phase) are taxpayers with revenues subject to VAT surpassing SAR 0,25 billion (ca. EUR 62 million).

This next wave is scheduled to commence as of 1 October 2023. Businesses fitting the given criteria should prepare to adhere to the new regulation.

Pagero continues to follow the Kingdom of Saudi Arabia’s progress in introducing electronic invoicing. Stay tuned for more updates in KSA.

The Kingdom of Saudi Arabia’s venture to join the digital era started on 4 December 2021, as Phase One (Generation Phase) was implemented. This phase required all taxpayers to generate and archive invoices electronically according to the new content requirements.

Furthermore, Phase Two (Integration Phase) became effective on 1 January 2023, and it was decided to implement it in waves. Entering Phase Two means that taxpayers required to comply will have to adhere to several additional requirements. These new regulations regard the mandatory issuance of e-invoices in a specific format and the integration of the e-invoicing systems into the (FATOORA) platform, among others.

On 23 December 2022, the Zakat, Tax and Customs Authority (ZATCA) announced that taxpayers with revenues subject to VAT surpassing SAR 0,5 billion (ca. EUR 124 million) are in the scope for wave two. This next wave is scheduled to start on 1 July 2023, and businesses falling under the criteria should be prepared to adhere to the new regulation.

As we wrote in a previous update, earlier in June this year ZATCA announced an initiative to suspend fines and penalties for taxpayers subject to all tax laws in the KingdomZATCA announced an initiative to suspend fines and penalties for taxpayers subject to all tax laws in the Kingdom earlier in June this year. The initiative was effective from the beginning of June 2022 until the end of November this year.

Yesterday, the ZATCA announced a re-scheduling of the timelines – the exemption extension will further be applied, starting from 1 December 2022 until 31 May 2023.

Moreover, ZATCA emphasized that the fines enclosed in the initiative include, among others, registration in all tax systems, late payments, and late submission of a declaration in all tax systems. Penalties for field violations related to the application of electronic invoicing rules and provisions are listed as well.

In tandem with the announcement, ZATCA published an updated guideline that includes a detailed clarification of the scope and the applicability of the exemptions with various illustrative examples.