The Zakat, Tax, and Customs Authority (ZATCA) has officially announced the inclusion of the sixth wave of taxpayers into Phase 2 (Integration Phase) of mandatory e-invoicing. This latest wave encompasses businesses with an annual income ranging from SAR 70 million to SAR 100 million in either 2021 or 2022. These taxpayers will be required to adhere to the national FATOORAH regime starting from January 1, 2024. However, ZATCA will provide them with a specific date for compliance, which will fall between January and April 2024. It’s worth noting that Phase 1 was implemented in December 2021.
Here is a summary of the confirmed waves for mandatory e-invoicing implementation:
- Sixth Wave (Jan 2024): Taxpayers with an annual income between SAR 70 million and SAR 100 million
- Fifth Wave (Dec 2023): Taxpayers with an annual income between SAR 100 million and SAR 150 million
- Fourth Wave (Nov 2023): Taxpayers with an annual income between SAR 150 million and SAR 250 million
- Third Wave (Oct 2023): Taxpayers with an annual income between SAR 250 million and SAR 500 million
- Second Wave (Jul 2023): Businesses with a turnover exceeding SAR 500 million (approximately USD 13.3 million). ZATCA should have already contacted eligible businesses in this wave.
- First Wave (Jan 2023): Taxpayers with an annual turnover above SAR 3 billion
Effective date: January 1, 2024