Regulatory updates - Saudi Arabia

On March 21, 2025, the Saudi Zakat, Tax and Customs Authority (ZATCA) announced the criteria for wave 22 of taxpayers needing to comply with the second phase of the e-invoicing mandate.

This wave includes taxpayers with revenues subject to VAT exceeding 1 million SAR (approximately 246,300 EUR) during 2022, 2023, or 2024. Taxpayers in the scope will have to issue e-invoices and integrate with the FATOORA platform no later than December 31, 2025.

ZATCA will notify all affected taxpayers to allow timely compliance with the above obligation.

On February 28, 2025, the Saudi Tax and Customs Authority (ZATCA) released the criteria for taxpayers included in the 21st wave required to adhere to the Integration Phase of the e-invoicing mandate.

The 21st wave encompasses taxpayers whose revenues subject to VAT exceeded 1.25 million SAR (ca. 307 000 EUR) in 2022, 2023 or 2024. Concerned taxpayers must issue e-invoices and integrate with the FATOORA platform by November 30, 2025.

ZATCA will notify taxpayers in the scope.

On January 31, 2025, the Saudi Tax and Customs Authority (ZATCA) released the criteria for the twentieth wave of taxpayers in the Phase 2 e-invoicing obligation scope.   

This group encompasses taxpayers with annual revenues subject to VAT exceeding 1.5 million SAR (approximately 385,000 EUR) in 2022 or 2023.  Taxpayers in scope must integrate with the FATOORA platform no later than October 31, 2025, to adhere to the Phase 2 requirements. 

ZATCA will contact the affected taxpayers to ensure they are prepared to comply with the obligations by the specified deadlines. 

On December 29, 2024, the Zakat, Tax and Customs Authority (ZATCA) informed that it had decided to extend its Cancellation of Fines and Penalties initiative until June 30, 2025.

To be eligible for the exemption, taxpayers must be registered under relevant tax laws, submit any previously non-submitted returns and pay all principal tax debt associated with the returns. Taxpayers may also request installment payment plans and are encouraged to follow the guidelines published on the ZATCA website, which contain further details on the initiative.

The Saudi Tax and Customs Authority (ZATCA) has announced that the nineteenth group of taxpayers must adhere to the integration phase of the e-invoicing obligation. 

The group includes taxpayers with taxable annual revenue exceeding 1.75 million SAR (ca. 456.000 EUR ) in 2022 or 2023. The taxpayers must issue e-invoices and integrate with the FATOORA platform by September 30, 2025.

ZATCA will contact taxpayers in the scope.