ZATCA announces criteria for selecting taxpayers in the seventh wave of e-invoicing

On 28 July 2023, the Zakat, Tax and Customs Authority (ZATCA) announced the selection criteria for resident taxpayers participating in the upcoming seventh wave of the e-invoicing integration phase. 

Key considerations for taxpayers as per the announcement: 

• Resident taxpayers with taxable revenue exceeding SAR 50 million in VAT returns for the calendar years 2021 or 2022 are required to integrate their e-invoicing systems with ZATCA for clearance or reporting of e-invoices.
• Integration for the seventh wave of resident taxpayers is scheduled to go live on the ZATCA Fatoora Portal starting from 1 February 2024. This provides these taxpayers with at least six months to ensure compliance with the integration phase requirements.

Based on past experience, ZATCA will formally notify the selected taxpayers about the seventh wave timeline. Moreover, this announcement comes within a span of less than 60 days after the sixth wave, indicating that upcoming waves might be revealed soon.

Taxpayers who were not included in previous waves should plan ahead, as they may fall in upcoming ones. Timely integration with ZATCA requires substantial IT and human resources, making proactive preparation crucial for a smooth compliance process.