ZATCA Announces 20th Wave of E-Invoicing: Compliance Required for Businesses with Revenues Over SAR 1.5 Million

The Zakat, Tax, and Customs Authority (ZATCA) has announced the launch of the 20th wave of e-invoicing, furthering Saudi Arabia's digital transformation in taxation. This wave mandates that businesses with annual revenues exceeding SAR 1.5 million in either 2022 or 2023, and subject to Value Added Tax (VAT), must adhere to e-invoicing regulations between August 1 and October 31, 2025.

Implications for Businesses

Eligible businesses are required to integrate electronic invoicing (FATOORA) into their financial operations within the stipulated timeframe. This transition is intended to facilitate seamless tax compliance, enhance transparency, and improve efficiency in business transactions.

Key Compliance Considerations

• ZATCA-Compliant E-Invoicing Solution Adoption: Ensure your ERP or invoicing system meets the necessary technical specifications as defined by ZATCA.
• Integration with the ZATCA System: Implement systems capable of generating, storing, and transmitting e-invoices in the required format to ZATCA.
• Adherence to Phase 2 Regulations: The 20th wave is governed by Phase 2 mandates, encompassing invoice clearance and reporting mechanisms.

Significance of E-Invoicing

Saudi Arabia's e-invoicing initiative forms an integral part of Vision 2030, aimed at modernizing financial operations, mitigating tax evasion, and optimizing the tax ecosystem. Non-compliance with the specified regulations may result in penalties and operational disruptions.

Proactive Measures for Compliance

Given the established compliance deadline, businesses should proactively ensure adherence to the new regulations. Whether you are an ERP provider, tax advisor, or business owner, aligning with ZATCA's requirements is critical.

Lavaloon KSA Compliance Solutions

For comprehensive support and to enhance your compliance strategy, Lavaloon offers advanced support services. Learn more by contacting [email protected] or download the free app: https://lnkd.in/dB_GXd9S