Saudi Arabia’s e-invoicing regime is fully live, requiring all VAT‑registered businesses to issue invoices through a compliant Electronic Generation Solution (EGS) connected to the Fatoora platform. In 2026, two SME‑scale integration waves—Wave 23 and Wave 24—will bring additional businesses into the real‑time clearance system, with deadlines of 31 March 2026 and 30 June 2026 respectively, while the penalty‑waiver initiative expires on 30 June 2026.
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VatCalc · 6 days ago
Saudi Arabia has approved amendments to the GCC Unified VAT Agreement, formalising a 5% minimum VAT rate across the Gulf and confirming Saudi Arabia's 15% and Bahrain's 10% rates. The reforms introduce a first‑port‑of‑entry model for import VAT, a VAT settlement mechanism for onward movements, and enhanced information sharing between GCC tax authorities.
The Invoicing Hub · 2 months ago
Saudi Arabia has rolled out a comprehensive e‑invoicing mandate led by ZATCA, requiring all companies to issue and transmit electronic invoices via the Fatoora platform. The phased implementation includes mandatory clearance for B2B/B2G and e‑reporting for B2C, with progressive waves based on turnover thresholds. As of March 31, 2026, companies with annual turnover above SAR 750 000 must comply, with further thresholds set for June 2026.
Deloitte · 5 months ago
Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has issued amendments to the VAT Implementing Regulations that clarify the responsibilities of electronic marketplaces and e-commerce platforms. The changes define when a marketplace is deemed to facilitate a supply and therefore liable for VAT, and introduce phased effective dates for compliance. Businesses operating in the Kingdom should review their operating models and contractual arrangements to ensure alignment with the updated framework.
EY · 6 months ago
ZATCA continues expanding Phase 2 e-invoicing integration throughout 2025, with Wave 24 covering businesses with turnover above SAR 375,000. Non-compliance penalties range from SAR 5,000 to SAR 50,000.
Marmin AI · 7 days ago
UAE e‑invoicing will give the Federal Tax Authority real‑time, invoice‑level visibility via the Peppol network, enabling automated matching of output and input VAT. The new system requires businesses to align VAT return timing with invoice transmission, ensure credit notes reference original invoices, and depend on suppliers’ successful transmission for input VAT recovery. Firms should update supplier agreements and reconcile monthly to avoid audit triggers.
Marmin · 8 days ago
The UAE's Cabinet Resolution 106 imposes escalating penalties for e‑invoicing non‑compliance, with specific deadlines for appointing an accredited service provider and implementing the system. Phase 1 businesses (annual revenue ≥AED 50 million) must appoint an ASP by 30 Oct 2026 and have the system live by 1 Jan 2027, while Phase 2 businesses face similar obligations by 1 Jul 2027. Penalties include AED 5 000 per month for missed appointments, AED 5 000 per month for delayed implementation, AED 100 per invoice outside the system (capped at AED 5 000/month), and AED 1 000 per day for unreported system failures.
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Key Takeaways
Wave 23 deadline is 31 March 2026; Wave 24 deadline is 30 June 2026.
Wave 23 covers businesses with VAT‑subject turnover exceeding SAR 750,000 in 2022‑2024; Wave 24 covers those exceeding SAR 375,000 in 2022‑2024.
The penalty‑waiver initiative expires on 30 June 2026.
Simplified invoices apply to supplies below SAR 1,000.
Phase 1 generation rules were enforced on 4 December 2021.
Primary source
Read the full article at RtcsuiteThis summary was published on VATfaqs.com on 25 June 2026. It relates to VAT developments in Saudi Arabia. The original source is Rtcsuite.
