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November 21, 2023 Saudi Arabia announces ninth wave of Phase 2 e-invoicing integration
Executive summary On 17 November 2023, the Saudi Arabia Zakat, Tax and Customs Authority (ZATCA) announced on its website that taxpayers resident in Saudi Arabia, with a taxable turnover exceeding 30m Saudi Riyal (SAR30m) during calendar year 2021 or 2022, will fall within the ninth wave of Phase 2 e-invoicing integration and should comply with the Phase 2 requirements. The ZATCA will notify the impacted taxpayers in preparation for linking and integrating their electronic invoicing systems with the ZATCA's e-invoicing platform (Fatoora). Further, the ZATCA Governor has issued Decision No. 23771 dated 30/04/1445 AH, which was published in the Official Gazette on 17 November 2023, and mentions that the taxpayers coming under the ninth wave should comply with the Phase 2 e-invoicing requirements between 1 June 2024 and 30 September 2024, inclusive of both dates. Detailed discussion Background On 4 December 2020, the ZATCA introduced e-invoicing in Saudi Arabia, releasing the E-Invoicing Regulation. E-invoicing in Saudi Arabia is being implemented in two phases:
The ZATCA has already notified resident businesses falling under the first eight waves to comply with Phase 2 of e-invoicing as per their applicable timelines. ZATCA announcement Based on the latest announcements, the ZATCA will begin notifying taxpayers who fall within the ninth wave of Phase 2 e-invoicing integration, to go live within the period between 1 June 2024 and 30 September 2024, inclusive of both dates. Implications Resident businesses should comply with the obligations of Phase 2 e-invoicing integration based on the ZATCA notification and undertake the relevant steps in making the required changes in their information technology systems. Taxpayers should comply with the Phase 2 requirements in line with the e-invoicing regulation to preclude possible penalties. Taxpayers who do not fall within the first eight waves of Phase 2 e-invoicing integration should monitor future announcements from the ZATCA on the integration timeline period applicable to them in subsequent waves. ——————————————— For additional information with respect to this Alert, please contact the following: EY Consulting LLC, Dubai
Ernst & Young Professional Services (Professional LLC), Riyadh
Ernst & Young Professional Services (Professional LLC), Jeddah
Ernst & Young Professional Services (Professional LLC), Al Khobar
Ernst & Young — Middle East, Bahrain
Ernst & Young LLP (United States), Middle East Tax Desk, New York
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor ——————————————— ENDNOTES 1 See EY Global Tax Alert, Saudi Arabia releases final e-invoicing regulations for Phase 2, dated 24 June 2022. 2 See EY Global Tax Alert, Saudi Arabia announces second wave of Phase 2 e-invoicing integration, dated 28 December 2022. 3 See EY Global Tax Alert, Saudi Arabia announces third wave of Phase 2 e-invoicing integration, dated 24 March 2023. 4 See EY Global Tax Alert, Saudi Arabia announces fourth wave of Phase 2 e-invoicing integration, dated 2 May 2023. 5 See EY Global Tax Alert, Saudi Arabia announces fifth wave of Phase 2 e-invoicing integration, dated 30 May 2023. 6 See EY Global Tax Alert, Saudi Arabia announces sixth wave of Phase 2 e-invoicing integration, dated 16 June 2023. 7 See EY Global Tax Alert, Saudi Arabia announces seventh wave of Phase 2 e-invoicing integration, dated 31 July 2023. 8 See EY Global Tax Alert, Saudi Arabia announces eighth wave of Phase 2 e-invoicing integration, dated 24 August 2023. | ||||||||||||||||||||||||||||