Saudi Arabia Requires E-invoicing Integration for VAT Exceeding USD39.9M
(MENAFN) The Zakat, Tax, and Customs Authority in Saudi Arabia has announced that taxpayers who are subject to value-added tax surpassing SR150 million (USD39.9 million) during 2021 or 2022 are required to integrate their e-invoicing systems with the Fatoora platform. Fatoora, an electronic invoicing project applicable to business-to-business, business-to-consumer, and business-to-government transactions, is set to facilitate the process. The announcement comes as the tax authority revealed the revenue figure as the criteria for selecting establishments in the fourth wave of e-invoicing Phase Two, commencing on Nov. 1, 2023.
The ZATCA emphasized that it will notify all the targeted establishments at least six months before their linkage and integration phase, indicating the gradual nature of the second phase, which also requires additional requirements, referred to as the generation phase. This phase will be done gradually and in groups. Some of the key requirements for the second stage include linking the electronic billing system of taxpayers with the Fatoora platform and issuing electronic invoices based on a specific formula.
The integration of e-invoicing systems with the Fatoora platform is expected to simplify and streamline the invoicing process for businesses, thereby enhancing transparency and reducing the likelihood of errors. The move is also expected to improve the efficiency of the invoicing process, leading to significant cost savings for businesses. Furthermore, the gradual nature of the integration process will allow businesses to adapt to the changes and ensure a smooth transition. Overall, the move by the ZATCA is expected to benefit businesses in Saudi Arabia, making it easier for them to comply with tax regulations and streamline their operations.
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