In early November, a new wave joined ZATCA second phase of e invoicing in Saudi Arabia. The Zakat, Tax, and Customs Authority (ZATCA) follows a gradual strategy for integrating establishments’ accounting systems with its platform, FATOORA.
What are the criteria for Wave 17 of the integration phase? How should targeted establishments prepare for tax compliance, avoiding errors and subsequent fines? We answer these questions in detail below.
Date and Criteria for Wave 17 of ZATCA Second Phase of E Invoicing
On November 1, 2024, ZATCA announced the criteria for selecting establishments targeted in Wave 17 of the ZATCA second phase of e invoicing integration.
According to ZATCA, Wave 17 includes all establishments with VAT taxable revenue exceeding SAR 2.5 million in 2022 or 2023.
The authority stated that all establishments in Wave 17 would be notified to comply with tax regulations and integrate with the FATOORA platform by July 31, 2025.
The six-month advance notice aims to give taxpayers sufficient time to prepare, meet all the ZATCA second phase requirements, and settle their tax affairs.
Failing to comply with the ZATCA second phase requirements could lead to financial penalties of up to SAR 50,000.
Read more: E Invoicing Violations Covered by the Initiative of Fines Cancellation
How to Prepare Your Establishment for ZATCA Second Phase Requirements
To ensure compliance with the ZATCA second phase of e invoicing, establishments should follow several essential steps:
1. Select a Suitable Invoicing System
Establishments must choose an e invoicing system compatible with ZATCA’s standards.
The system should generate e invoices with all required fields, like the VAT number and QR code, and store them in formats such as XML, aligning with the authority’s specifications.
2. Full Compliance with E Invoicing Requirements
It is crucial to ensure your invoicing system meets all legal and technical requirements, including data encryption and protection.
This involves instant integration with FATOORA and adherence to the applicable tax laws to avoid regulatory mistakes.
3. Leverage the Cancellation of Fines Initiative
ZATCA has introduced the Cancellation of Fines Initiative for certain e invoicing violations, providing establishments with a chance to correct their tax status without additional fines.
If system updates are needed to comply with the ZATCA second phase, leveraging this initiative can be strategic.
4. Partner with a Certified E Invoicing Solution Provider
Collaborate with a certified e invoicing solution provider for technical support and smooth integration with FATOORA. This ensures a secure and compliant connection with ZATCA’s platform.
5. ZATCA Second Phase: Integration with FATOORA
Once systems are prepared and a certified provider is chosen, initiate the integration with FATOORA. This requires using approved APIs to ensure seamless data transfer between your accounting system and ZATCA’s system.
Read more: Your Guide to Full Integration with Fatoora Portal
ZATCA Second Phase Made Simpler with EZ Integrated Solutions
Although ZATCA adopts a phased approach for the ZATCA second phase, many establishments still face challenges in achieving full compliance.
This is where EZ Integrated comes in as a certified e invoicing solutions provider in Saudi Arabia, offering comprehensive services to connect your accounting system with FATOORA.
Easy and Flexible Integration
EZ Integrated solutions provide seamless integration between your accounting system and FATOORA. This ensures effortless compliance and accurate, secure invoice management for your business.
24/7 Technical Support
Our team at EZ Integrated offers round-the-clock technical support to help establishments overcome any technical or regulatory challenges during the integration phase.
Full Compliance with ZATCA Requirements
Our solutions fully align with ZATCA’s requirements, helping establishments avoid fines or penalties due to non-compliance.
Contact EZ Integrated today for a free consultation on achieving fast and secure compliance with the ZATCA second phase requirements. Take advantage of our advanced solutions and focus on growing your business with confidence.