In Saudi Arabia, the turnover limit for e-invoicing is governed by the regulations set by the Zakat, Tax and Customs Authority (ZATCA). As per the current rules:
Turnover Limit for E-Invoicing:
1.Phase 1 (Generation of E-Invoices):
Businesses with an annual turnover exceeding SAR 500 million are required to comply with e-invoicing from December 2021. These businesses need to generate and store invoices electronically.
2.Phase 2 (Integration with ZATCA System):
All businesses with a turnover exceeding SAR 3 million are required to comply with Phase 2 of the e-invoicing mandate from January 2023. In this phase, businesses are required to integrate their invoicing systems with the ZATCA e-invoicing system for real-time invoice validation and transmission.
3. For Businesses Below the Limit:
Businesses with turnover below SAR 3 million are not required to comply with the e-invoicing requirement, though they may still voluntarily adopt the e-invoicing system.
4. Key Takeaway:
SAR 500 million turnover threshold: For Phase 1 (e-invoice generation).
SAR 3 million turnover threshold: For Phase 2 (e-invoice integration with ZATCA).
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