KSA: Update on Integration Phase of 'Fatoora' Project

Zakat, Tax and Customs Authority (ZATCA) has previously launched a two-phased implementation of the e-invoicing system called ‘Fatoora’:

·        Phase One - Generation – launched on 04 December 2021 where covered entities stored their invoices, bills, credit and debit notes electronically.

·        Phase Two - Integration – expected to integrate the electronically generated documents to the ZATCA’s Fatoora portal.

Recent Developments on the Integration Phase of KSA’s Fatoorah Project

·        23 December 2022 - End of ‘Fatoora Pilot Testing’

·        26 December 2022 - Official Fatoora portal went live

·        27 December 2022 - Introduction of new ‘Fatoora Simulation Portal’

·        01 January 2023 - First wave of Integration phase

·        01 July 2023 - Second wave of Integration phase

Integration Phase as of 2023

·        First Wave – exceeding revenues of SAR 1 billion – go-live as of 01 January 2023

·        Second Wave – exceeding revenues of SAR 500 million – go-live as of 01 July 2023

Official Fatoora Portal go-live

·        26 December 2022 - First Wave taxpayers may start integrating their e-invoicing systems to the Fatoora portal starting 26 December 2022

·        27 December 2022 - Other taxpayers may continue testing their e-invoicing systems with the ‘Fatoora Simulation Portal’ starting 27 December 2022

Subsequent groups will be informed at least six (6) months before the date set for linking of their system with ZATCA.

Key takeaways

1.   Taxpayers part of the First Wave may now start integrating with ZATCA system using the Official Fatoora Portal. Other taxpayers may continue testing using the simulation portal.

2.   Integration Phase requires an extensive review of ERP systems to ensure seamless integration with ZATCA system. Taxpayers must ensure readiness for the Integration Phase and implement required changes.