ZATCA e-Invoicing Compliance For Shopify.com

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Shopify.com is a powerhouse in the e-commerce world, providing a platform that allows individuals and businesses to easily create, customize, and manage online stores. Since its founding in 2006, Shopify has grown into one of the most popular e-commerce solutions globally, empowering millions of entrepreneurs and companies across various industries. Shopify’s user-friendly interface stands out as one of its key strengths, enabling anyone—regardless of technical expertise—to launch and operate a professional online store.

For small and growing businesses, Shopify’s features are especially valuable. The platform offers customisable templates, mobile-friendly designs, integrated payment options, and efficient inventory management, making it ideal for businesses looking to scale their operations online. In Saudi Arabia (KSA), where digital shopping demand is rising rapidly, Shopify provides a robust foundation for brands to increase their visibility and reach new customers. As of November 2024, there are more than 3,000 Shopify stores in KSA alone, demonstrating the platform’s popularity in the region .

However, e-commerce growth in KSA also brings new compliance requirements, as the Saudi Zakat, Tax, and Customs Authority (ZATCA) has introduced a phased e-invoicing mandate known as the “ZATCA Waves.” These waves guide businesses through the steps needed to adopt e-invoicing, aiming to improve financial transparency across sectors and increase oversight of the digital economy. Here’s a quick look at the current waves:

Wave 1 (December 4, 2021)Generation Phase: This phase required all taxpayers to start generating and storing electronic invoices, including simplified and tax invoices. Businesses had to adopt compliant e-invoicing solutions capable of creating digital invoices, adding required fields like QR codes, and securely storing them electronically. This phase set the foundation for future compliance standards.

Wave 2 (January 1, 2023)Integration Phase: This phase required large taxpayers with revenues over SAR 3 billion to integrate their e-invoicing systems with ZATCA’s platform, enabling real-time data transmission for enhanced oversight. By centralizing invoice data, ZATCA aims to streamline transaction monitoring and reporting.

Subsequent Waves: Following Wave 2, ZATCA is gradually extending integration requirements to smaller businesses over time. Each wave targets a new group of taxpayers, based on revenue thresholds, ensuring that the mandate scales in a manageable way.

The following table outlines the active phases in the ZATCA Waves:

Wave   Revenue Threshold  Deadline

1-9          More than SAR 30 Million        Deadline Passed

10            More than SAR 25 Million        31 December 2024

11            More than SAR 15 Million        31 January 2025

12            More than SAR 10 Million        28 February 2025

13            More than SAR 7 Million           31 March 2025

14            More than SAR 5 Million           30 April 2025

15            More than SAR 4 Million           31 May 2025

16            More than SAR 3 Million           30 June 2025

17            More than SAR 2.5 Million       31 July 2025

As ZATCA lowers the revenue thresholds with each wave, more small and medium-sized businesses on Shopify will find themselves required to comply with the e-invoicing mandate. For Shopify entrepreneurs in KSA, this presents both a challenge and an opportunity. While compliance with ZATCA’s mandate is essential to avoid potential penalties, it also requires a seamless and effective e-invoicing solution—something that many Shopify stores currently lack.

Recognizing this need, Marmin.ai has developed an integrated ZATCA-compliant solution specifically for Shopify businesses. Our platform is designed with small and medium enterprises in mind, allowing them to comply with ZATCA’s requirements without a hitch. Marmin.ai’s Shopify integration supports:

  • Data localization and encryption for secure invoice storage
  • Real-time invoice submission to ZATCA, meeting regulatory deadlines
  • QR-enabled B2C and B2B invoices that are compliant as per ZATCA’s mandates
  • Flexible invoicing options, including sending invoices via email, SMS, or printing from a Shopify POS app

By automating these essential processes, Marmin.ai helps Shopify businesses stay legally compliant while enhancing their operational efficiency. Our SaaS platform not only ensures data security but also simplifies financial reporting, freeing up time for business owners to focus on growth instead of administrative hassles.

With Marmin.ai’s seamless integration, Shopify businesses in KSA can embrace the benefits of digital transformation, effortlessly meet ZATCA’s e-invoicing requirements, and maintain a strong footing in the rapidly evolving e-commerce landscape.


Reach us at hello@marmin.ai or Book a Demo