ZATCA Determines Criteria for Enrolling Entities in 10th Group to Implement Linking and Integration Phase of E-Invoicing

The Zakat, Tax and Customs Authority (ZATCA) has set the criteria for choosing target entities in the 10th group to implement the “linking and integration” phase of electronic invoicing.

The ZATCA explained that this group included all the organizations whose revenues are subject to value-added tax and exceed SAR25 million in 2022 or 2023.

The ZATCA will notify all targeted entities in the 10th group before linking and integrating their electronic billing systems with the Fatoora Portal, starting on October 1st.

The linking and integration entail additional prerequisites as compared with the first stage, the issuance and preservation, the most prominent of which is linking taxpayers’ electronic invoicing systems with a fatwa consultation system, issuing electronic invoices based on a specific formula, and including a number of additional elements in the invoice.

Commitment with the second phase, the linking and integration, will be implemented gradually in groups, with the authority informing the subsequent groups directly at least six months before the date specified for the linking process, the authority added.

The ZATCA reiterated that the second phase of electronic invoicing extends the economic renaissance and digital transformation witnessed in Saudi Arabia and continues a success story that began with implementing electronic invoicing.

The authority also praised the great awareness shown by taxpayers and the speed of their response in implementing the project’s first phase.