e-Invoicing Compliance in KSA: Understanding Phases & Waves

| Updated on: November 14, 2024

The Zakat, Tax and Customs Authority (ZATCA) introduced a new system of electronic invoicing in the KSA (Kingdom of Saudi Arabia) recently. This system was introduced in a series of phases to make it easy for people to transition into the same.

Here is a list of key dates that you should know if you are running your business in KSA. These dates will help you remember the deadline by which you have to follow the mandate released by ZATCA to avoid penalties.

Phase

Wave

Processes Involved

Implementation Date

Phase 1 (Generation Phase

ZATCA mandates the electronic generation of invoices at this stage.
An E-invoicing solution recognised by ZATCA should be used for the same.
Businesses shouldn’t have invoices in physical formats anymore (photos, PDFs, etc.).
E-invoices should contain all the details that physical invoices contain.

December 4, 2021

Phase 2 (Integration Phase)

Waves are based on taxpayers’ turnover:

Wave 1 – above SAR 3 billion

Wave 2 – SAR 500 million to SAR 3 billion

Wave 3 – SAR 250 million to SAR 500 million

Wave 4 - SAR 150 million to SAR 250 million

Wave 5 – SAR 100 million to SAR 150 million

Wave 6 – SAR 70 million to SAR 100 million

Wave 7 – SAR 50 million to SAR 70 million

Wave 8 – SAR 40 million to SAR 50 million

Wave 9 -

SAR 30 million to SAR 40 million

Wave 10 – SAR 25 million to SAR 40 million

Wave 11 – SAR 15 million to SAR 25 million

Wave 12 – SAR 10 million to SAR 15 million

Wave 13 – SAR 7 million to SAR 10 million

Wave 14 – SAR 5 million to SAR 7 million

Wave 15 – SAR 4 million to SAR 5 million

ZATCA implemented this phase in different waves, based on the turnover of taxpayers
This phase involves integrating the existing e-invoicing solutions of taxpayers with ZATCA’s e-invoicing platform, known as FATOORAH.
Steps involved in this phase are connecting to FATOORAH using any of the APIs used by taxpayers, generating a UUID (Universally Unique ID), creating a digital signature, assigning a sequential number for the e-invoices, providing the e-invoices with a cryptographic stamp and sharing the e-invoices with buyers within 24 hours of generation.

Wave1 – January 1, 2023

Wave 2 – July 1, 2023

Wave 3 – October 1, 2023

Wave 4 – November 1, 2023

Wave 5 – December 1, 2023

Wave 6 – January 1, 2024

Wave 7 – February 1, 2024

Wave 8 – March 1, 2024

Wave 9 – June 1, 2024

Wave 10 – October 1, 2024

Wave 11 – November 1, 2024

Wave 12 – December 1, 2024

Wave 13 – January 1, 2025

Wave 14 – February 1, 2025

Wave 15 – March 1, 2025

e-Invoicing, simplified and stress-free

To make your e-Invoicing journey a walk in the park explore TallyPrime, accredited by ZATCA as a compliant e-Invoicing (FATOORA) software. Offering real-time e-Invoicing and compliance, the software can ease and strengthen your e-Invoicing process.

Here are some of the key TallyPrime e-invoicing features:

Easily print e-invoices with a ZATCA-verified QR code, including the supplier’s name, VAT registration number, invoice amount, and tax breakdown
Generate and archive tax invoices, credit, and debit notes in compliance with ZATCA
Generate invoices in both Arabic and English along with other customisation options
Efficiently generate multiple e-invoices from selected invoices simultaneously with bulk processing capability
Effortlessly handle returns and reversals by generating e-invoices for credit and debit notes
Monitor all transactions with the help of TallyPrime e-Invoice reports

Explore TallyPrime now.