E-Invoice Implementation for KSA The implementation of e-invoicing has become compulsory in Saudi Arabia (KSA).
Starting from January 1, 2023, the e-invoicing mandate in Saudi Arabia is now fully implemented. Individuals and businesses who are liable for taxes must adhere to the requirement of utilizing the ZATCA (FATOORA) platform to transmit electronic invoices in a predetermined structured format. It is essential that all e-invoices are promptly reported and validated in real-time with ZATCA. Consequently, all VAT-registered taxpayers are obligated to generate and submit e-invoices containing specific content in a structured format, as well as securely store them in accordance with the regulations. As a result, suppliers are prohibited from creating or retaining paper or PDF invoices.
End-to-End Compliance with ZATCA
Our solution seamlessly integrates with the systems of ZATCA, allowing for a smooth incorporation without causing any disruption to your existing setup.
Real-time monitoring and tracking
After the invoice is created, e-invoicing eliminates the necessity for manual input, thus ensuring the integrity of the invoice by making it tamper-proof.
Secure communication via API
Through our API-based Electronic Data Interchange (EDI), we guarantee the protection of private systems from unauthorized access by third-party entities.
Boost efficiency and effectiveness
E-Invoicing has the ability to automate your workflow and documentation procedures. This integration enables a significant reduction in manual workloads by up to 50%.
Swift and efficient implementation
Our solutions are designed to facilitate a smooth compliance journey for your organization. Our ERP connectors ensure seamless integration with your ERP, streamlining operations.
Comprehensive Support
Furthermore, we offer extensive support for our solution, including comprehensive assistance and online help manuals, all available in Arabic.
Benefits of E-Invoicing
Electronic Invoicing has several benefits for both persons subject to E-Invoicing Regulations and
the national economy, these benefits include but are not limited to:
- Reduces cost of the invoicing process
- Prevents human error in invoicing process
- Enhances digitalization in supply chain
- Improves accounting and book keeping
- Enhances business ecosystem with enriched fair competition and consumer protection through the provision of a unified process for validating and auditing invoices
- Reduces hidden economy transactions
- Reduces commercial concealment by increasing requirements related to invoice
tracking and data retention - Enriches the consumer experience and digitizes the consumer-supplier relationship
- Increases compliance with tax obligations through enhanced verification of business
transactions
Scope of E-Invoicing Taxable Persons subject to E-Invoicing
- All Taxable Persons subject to E-Invoicing Regulations are obliged to generate E-Invoices for all their transactions for which Tax Invoices must be issued, in addition to the electronic notes that must be issued in the cases stipulated in the VAT Law and its implementing regulations
- Taxable Persons who are subject to the E-Invoicing Regulation include:
- Taxable person that is a Resident of the Kingdom .
- The customer or any third party that issues a Tax Invoice on behalf of the taxable person that is a Resident in the Kingdom according to Article 53 (3), on the amendment of VAT Implementing Regulations which was approved by the Authority in 2021/11/09 that implemented on Dec. 4th, 2021.
Important Dates
Phase 2 (Integration Phase) begins for wave for wave 2 taxpayers (annual revenue exceeding SAR 500 Million)
Phase 2 (Integration Phase) begins for wave for wave 4 taxpayers (annual revenue exceeding SAR 150 Million)
Phase 2 (Integration Phase) begins for wave for wave 3 taxpayers (annual revenue exceeding SAR 250 Million)
Phase 2 (Integration Phase) begins for wave for wave 5 taxpayers (annual revenue exceeding SAR 100 Million)
Research beyond the business plan
Phase 2 known as the Integration phase, during this phase, subjective taxpayers must comply
with Phase 2 business and technical requirements for the electronic invoices and E-Invoice
Solutions, and the integration with ZATCA’s system.
Phase 2 is enforceable starting from January 1, 2023 and implemented in waves by targeted
taxpayer groups. Taxpayers will be notified by ZATCA on the date of their integration at least 6
months in advance.
The enforcement date for the first target group will not be earlier than January 1, 2023.
ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance through
Official emails & SMS registered with ZATCA
A taxpayer can use the same E-Invoice Solution that was used for Phase 1, by updating the EInvoice Solution to comply with the Phase 2 requirements.
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