Saudi Arabia continues with announcements of additional waves as part of the country’s tax and electronic invoicing mandates. Discover the latest waves, as well as the country’s existing mandates.
Saudi Arabia’s existing mandates - Phase 1
In December 2020, Saudi Arabia’s tax authority (Zakat, Tax and Customs Authority - ZATCA) announced new electronic invoicing regulations via a two phase approach.
The first phase, called the “Generation Phase”, stated that businesses must be able to issue and receive electronic invoices by December 2021. From December 2021, businesses were not able to use manual invoices and could only use a compatible e-invoicing system that had the ability to store and archive all invoices.
Existing and new mandates - Phase 2
The second phase of Saudi Arabia’s regulations, known as the “Integration Phase”, launched on the 1st of January 2023 in a staggered approach. Within this phase, businesses must integrate their compatible e-invoicing system to ZATCA’s platform FATOORA, using ZATCA’s own API. This particular phase has several waves in itself, all based on the company’s 2021 or 2022 taxable turnover. Taxpayers with turnover exceeding 30 million SAR (waves 1-9) are already in scope in the “Integration Phase”. The next waves of obligation are as follows:
- Wave 10 - October 2024 - Exceeding 25 million SAR (for year 2022 or 2023)
- Wave 11 - November 2024 - Exceeding 15 million SAR (for year 2022 or 2023)
- Wave 12 - December 2024 - Exceeding 10 million SAR (for year 2022 or 2023)
- Wave 13 - January 2025 - Exceeding 7 million SAR (for year 2022 or 2023)
- Wave 14 - February 2025 - Exceeding 5 million SAR (for year 2022 or 2023)
- Wave 15 - March 2025 - Exceeding 4 million SAR (for year 2022 or 2023)
- Wave 16 - April 2025 - Exceeding 3 millions SAR (for year 2022 or 2023)
Within Saudi Arabia’s regulations, all tax invoices are part of the clearance model, meaning the invoice must be cleared before it can be submitted to the end recipient. Within this phase, businesses must only generate electronic invoices in an XML or PDF/A-3 format.
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Stanislava has a vast background in accounting and finance, which transitioned her to a role in e-invoicing and tax compliance with Unifiedpost Group in 2020. She studied Industrial Management, which provided her with a comprehensive understanding of financial, managerial, and engineering sciences and processes. Stanislava is fluent in four languages and has experience working with many international companies all over the globe.
