ZATCA sets criteria for 25th group in e-invoicing integration phase

The Zakat, Tax and Customs Authority (ZATCA) has set the criteria for selecting businesses targeted in the 25th group for the 'integration phase' of e-invoicing, stating that this group includes all establishments with VAT-eligible revenues exceeding 187,500 riyals (SAR) during 2022, 2023, 2024, or 2025.

The authority said it will notify all businesses in the 25th group in preparation for connecting and integrating their e-invoicing systems with the FATOORA platform, starting from February 1, 2027.

It added that the second phase—the integration phase—requires additional steps beyond the first phase of issuance and storage. Key requirements include linking taxpayers’ e-invoicing systems with the FATOORA platform, issuing e-invoices in a specified format, and including several additional elements in the invoice. ZATCA noted that implementation of the second phase will be gradual and by groups, with each group being notified at least six months before their integration date.

ZATCA indicated that the second phase of e-invoicing is part of Saudi Arabia’s ongoing economic development and digital transformation, building on the success of the first phase, which achieved several positive outcomes, most notably enhancing consumer protection across the Kingdom. The authority praised the high level of awareness and swift compliance shown by taxpayers during the initial phase of the project.

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