ZATCA E-Invoicing

As Saudi Arabia forges ahead with its digital economy transformation, the implementation of ZATCA e-invoicing stands as a cornerstone in modernizing tax infrastructure and improving VAT transparency. For businesses operating in the Kingdom, the transition to ZATCA-approved e-invoicing in Saudi Arabia is no longer optional. With multiple waves of Phase 2 now underway, there is an urgent need for timely compliance. What is ZATCA E-Invoicing? The Zakat, Tax and Customs Authority (ZATCA) introduced e-invoicing regulations on 4 December 2020. The implementation is being rolled out in two phases: Phase 1: Generation Phase Effective Date: 4 December 2021 Requirements: Businesses must generate electronic invoices (e-invoices) and electronic notes using compliant systems, eliminating handwritten or PDF-based invoices. Phase 2: Integration Phase Effective Date: 1 January 2023 Requirements: Taxpayers must integrate their invoicing systems with ZATCA’s Fatoorah platform for real-time invoice clearance and reporting. This phase is being executed in waves. Wave Turnover Criteria Implementation Timeline 11 More than SAR 3B in 2021 1 Jan 2023 – 30 Jun 2023 12 SAR 500M to 3B in 2021 1 Jul 2023 – 31 Dec 2023 13 More than SAR 250M in 2021 or 2022 1 Oct 2023 – 31 Jan 2024 14 More than SAR 150M in 2021 or 2022 1 Nov 2023 – 29 Feb 2024 15 More than SAR 100M in 2021 or 2022 1 Dec 2023 – 31 Mar 2024 16 More than SAR 70M in 2021 or 2022 1 Jan 2024 – 30 Apr 2024 17 More than SAR 50M in 2021 or 2022 1 Feb 2024 – 31 May 2024 18 More than SAR 40M in 2021 or 2022 1 Mar 2024 – 30 Jun 2024 19 More than SAR 30M in 2021 or 2022 1 Jun 2024 – 30 Sep 2024 20 More than SAR 25M in 2022 or 2023 1 Oct 2024 – 31 Dec 2024 21 More than SAR 15M in 2022 or 2023 1 Nov 2024 – 31 Jan 2025 22 More than SAR 10M in 2022 or 2023 1 Dec 2024 – 28 Feb 2025 23 More than SAR 7M in 2022 or 2023 1 Jan 2025 – 31 Mar 2025 24 More than SAR 5M in 2022 or 2023 1 Feb 2025 – 30 Apr 2025 25 More than SAR 4M in 2022 or 2023 1 Mar 2025 – 31 May 2025 26 More than SAR 3M in 2022 or 2023 1 Apr 2025 – 30 Jun 2025 27 More than SAR 2.5M in 2022 or 2023 1 May 2025 – 31 Jul 2025 28 More than SAR 2M in 2022 or 2023 1 Jun 2025 – 31 Aug 2025 29 More than SAR 1.75M in 2022 or 2023 1 Jul 2025 – 30 Sep 2025 30 More than SAR 1.5M in 2022 or 2023 1 Aug 2025 – 31 Oct 2025 Businesses falling into these turnover bands must integrate with ZATCA and begin issuing e-invoices via approved platforms within the specified timelines to avoid non-compliance penalties. Nowara Infotech: Your Trusted Partner for ZATCA Compliance Nowara Infotech is a leading technology partner offering ZATCA e-invoicing solutions built on Microsoft Dynamics 365 Business Central. As a certified Microsoft Partner and a ZATCA-compliant technology provider, Nowara delivers scalable and future-ready compliance tools for businesses of all sizes. Key Capabilities: Why Choose Nowara Infotech for e-invoicing? Feature Details Technology Base Microsoft Dynamics 365 Business Central Compliance Coverage 100% ZATCA-compliant (Phases 1 & 2) Microsoft Certified Partner Yes Geographic Presence Headquartered in UAE, with strong operations in Saudi Arabia Integration with Fatoorah Platform End-to-end ZATCA e-invoicing connectivity Scalable Architecture SME to Enterprise-level support ZATCA e-invoicing is not just a regulatory requirement; it’s a stepping stone toward full digital transformation in Saudi Arabia. Whether your business is in the early waves or scheduled for the upcoming 20th wave with a deadline of 31 October 2025, timely action is essential. Partner with Nowara Infotech to ensure a seamless, secure, and scalable ZATCA-compliant invoicing journey.  Get in touch today for a free ZATCA readiness audit or demo.