Get Ready For Twentieth Wave: E-Invoicing Essentials for KSA Taxpayers

The Zakat, Tax and Customs Authority (ZATCA) has made a significant announcement regarding the Twentieth Wave of the Integration Phase for e-invoicing in Saudi Arabia. This initiative is a crucial part of the Kingdom's broader strategy to modernize its tax system, enhance compliance, and streamline business operations. This blog explores what this means for businesses and how they can prepare for the upcoming changes.

What is the Twentieth Wave?

On January 31, 2025, ZATCA clarified that all taxpayers whose revenues subject to VAT exceeded SAR 1.5 million during 2022 or 2023 will be included in this wave. This inclusion represents a significant expansion of the e-invoicing mandate, affecting a larger segment of businesses across various sectors. By targeting higher-revenue taxpayers, ZATCA aims to improve tax compliance and efficiency in revenue collection.

Key Dates to Note

• Notification Deadline: Taxpayers selected for this wave will be officially notified by October 31, 2025. This notification will provide essential details on how to proceed with integrating their e-invoicing systems.
• Integration Requirement: Businesses must ensure that their systems are fully integrated with the Fatoora Platform by this deadline to remain compliant with ZATCA regulations.

The Integration Phase introduces more stringent requirements compared to the initial Generation Phase. Key changes include:

• Mandatory Integration: Taxpayers must integrate their invoicing solutions with ZATCA's Fatoora platform.
• E-Invoice Format: E-invoices must follow a specific format and include additional fields to ensure compliance.
• Gradual Rollout: Implementation will occur in waves, with ZATCA committing to provide at least six months’ notice before each wave's integration date.

Steps for Businesses

To prepare for these changes, businesses should:

• Evaluate Current Systems: Conduct a thorough review of existing invoicing solutions and identify necessary upgrades.
• Plan for Integration: Work closely with solution providers to facilitate a seamless transition to the Fatoora platform.
• Stay Updated: Regularly check for updates from ZATCA regarding future waves and integration timelines.

Conclusion

As e-invoicing becomes an integral part of business operations in Saudi Arabia, taking proactive measures will position companies favourably within this evolving landscape. The announcement of the Twentieth Wave represents a significant milestone in Saudi Arabia's e-invoicing journey. By understanding these changes and preparing adequately, businesses can not only ensure compliance but also improve their operational efficiency.

For businesses looking for a seamless transition into this new phase, Webtel offers an integrated e-invoicing solution tailored for the Kingdom of Saudi Arabia. With features such as effortless integration with mainstream ERP systems like SAP and Oracle, Webtel ensures 100% compliance with ZATCA requirements.