The Zakat, Tax and Customs Authority (ZATCA) has identified the criteria for selecting the establishments targeted in the third group of the "connectivity and integration" phase of e-invoicing. The authority said the third group includes all the establishments that generated more than SAR250 million in revenues subject to the value-added tax in 2021 or 2022, adding that it will notify the targeted establishments in preparation for connecting them to the e-invoicing system on the Fatura platform starting October 1 2023. The ZATCA pointed out that "connectivity and integration", which is the second phase in the e-billing system, has additional requirements than the first phase, "issuance and preservation", foremost among which are connecting taxpayers' e-invoices with the Fatura platform, issuing e-invoices with specific wording, and adding a host of other items on the bill. Enrolling establishments in the second phase will be implemented gradually. In groups, the authority noted that it would inform the selected establishments at least six months before the enrollment date. The ZATCA said that the second phase of e-invoicing is an extension of the economic revival and digital transformation the Kingdom of Saudi Arabia has been witnessing and complements the success of the first stage, which yielded multiple positive results, such as bolstering consumer protection across the kingdom. The authority lauded the taxpayers' awareness and prompt response to implementing the project's first phase. Implementation of the first phase of the e-invoicing system began on December 4 2021, committing taxpayers subject to e-billing to halting the use of handwritten and computer-generated invoices, finding a technical solution for e-billing that is compliant with the ZATCA's requirements, and ensuring e-invoices are issued and saved with all their items, including the QR code.
