Saudi Arabia: Electronic Invoicing - Integration Phase - Fifth Group (Wave 5) Update

In brief

On 26 May 2023, the Zakat, Tax and Customs Authority (ZATCA), announced the criteria for the Electronic invoicing (E-invoicing) integration phase Wave 5 participants. 

As per the announcement, VAT registered taxpayers that have an annual taxable revenue (taxable supplies) exceeding SAR 100 million during the calendar year 2021 or 2022, are required to integrate their E-invoicing solutions with the FATOORA platform starting from 1 December 2023.

The official announcement can be accessed through this link.

In detail

E-invoicing in KSA was introduced earlier in two phases: generation and integration phase. The Generation phase already went live in December 2021 whereas ZATCA decided to roll out the Integration phase in waves as follows: 

• For taxpayers with taxable revenue exceeding SAR 3 billion, the go live date was 1 January 2023 (Wave 1)

• Taxpayers with taxable revenue of more than SAR 500 million, the go live date is 1 July 2023 (Wave 2)

• Taxpayers with taxable revenue exceeding SAR 250 million during calendar year 2021 or 2022, the go live date will start from 1 October 2023 (Wave 3)

• Taxpayers with taxable revenue exceeding SAR 150 million during calendar year 2021 or 2022, the go live date will start from 1 November 2023 (Wave 4)

Whereas for Wave 5 participants, as per the announcement made by ZATCA, taxpayers with taxable revenue exceeding SAR 100 million during calendar year 2021 or 2022 will be required to integrate their E-invoicing generation solution with the FATOORA platform starting from 1 December 2023. 

It is expected that an official email will be sent by ZATCA to all taxpayers who have been selected as part of Wave 5 of the Integration phase of E-invoicing. 

The takeaway

Non-resident service providers should assess the impact of this publication on their business in Saudi and how it may affect their overall tax burden.

If you wish to find out more about this and how this can impact your business, feel free to reach out to us for support.