ZATCA sets criteria for 24th group in e-invoicing integration phase

The Zakat, Tax and Customs Authority (ZATCA) set the criteria for entities included in the 24th group targeted for the “integration phase” of e-invoicing. The group covers all establishments with annual VAT-taxable revenues exceeding SAR 375,000 during 2022, 2023, or 2024.

ZATCA said it will notify all entities in this group ahead of linking their e-invoicing systems with the Fatoora platform by June 30, 2026.

The second phase of e-invoicing—linking and integration—introduces requirements beyond the first phase of issuance and storage. These include connecting taxpayers’ invoicing systems to Fatoora, issuing invoices in a standardized format, and adding specific mandatory data fields. ZATCA noted that implementation is being rolled out gradually, with each group notified at least six months prior to its integration deadline.

The authority highlighted that Phase Two builds on the Kingdom’s digital transformation drive and extends the success of Phase One, which strengthened consumer protection nationwide and was marked by strong compliance among taxpayers.

Phase One, introduced on Dec. 4, 2021, required taxpayers to cease using handwritten or manually prepared invoices and adopt e-invoicing solutions approved by ZATCA, ensuring all invoices include mandatory elements such as QR codes.