*See EY Global Tax Alert, Saudi Arabia releases final e-invoicing regulations for Phase 2, dated 24 June 2022.
**See EY Global Tax Alert, Saudi Arabia announces second wave of Phase 2 e-invoicing integration, dated 28 December 2022.
***See EY Global Tax Alert, Saudi Arabia announces third wave of Phase 2 e-invoicing integration, dated 24 March 2023.
****See EY Global Tax Alert, Saudi Arabia announces fourth wave of Phase 2 e-invoicing integration, dated 2 May 2023.
The ZATCA has already notified resident businesses falling under the above waves to remind them of their obligation to comply with Phase 2 e-invoicing within their applicable timelines.
ZATCA announcement
Based on the latest announcements, the ZATCA will begin notifying taxpayers who fall within the fifth wave of Phase 2 e-invoicing integration to go live between 1 December 2023 and 31 March 2024.
Implications
Resident businesses should comply with the obligations of Phase 2 e-invoicing integration based on the ZATCA notification they received and undertake the relevant steps in making the required changes in their information technology systems. Taxpayers should comply with the Phase 2 requirements in line with the e-invoicing regulation to preclude the possible imposition of penalties.
Taxpayers that do not fall within the first five waves of Phase 2 e-invoicing integration should monitor future announcements from the ZATCA to learn when the integration timeline period applicable to them arises as part of subsequent waves.
For additional information with respect to this Alert, please contact the following:
EY Consulting LLC, Dubai
- Aamer Bhatti, MENA Indirect Tax Leader
Ernst & Young Professional Services (Professional LLC), Riyadh
- Mohammed Bilal Akram, Indirect Tax
- Peter Dylewski, Indirect Tax
Ernst & Young Professional Services (Professional LLC), Jeddah
- Adrian Smith, Indirect Tax
- Mohsin Rehmani, Indirect Tax
Ernst & Young Professional Services (Professional LLC), Al Khobar
- Sanjeev Fernandez, Saudi Arabia Indirect Tax Leader
Ernst & Young — Middle East, Bahrain
- Ali Almahroos, Indirect Tax
Ernst & Young LLP (United States), Middle East Tax Desk, New York
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.