This article is all about the implementation of E-Invoicing in the Kingdom of Saudi Arabia. The implementation will be enforced in two phases. On the 4th of December 2021, 1st phase of E-invoicing will be rolled out. And the taxpayers of the KSA region will have to adopt it.
This article will focus on the requirements for phase 1 and how to get ready for this phase.
E-invoicing is basically a system of digital invoicing or a kind of electronic billing. It streamlines the invoice processing performance of trading partners, suppliers, and customers. Recently a number of governments have implemented new rules related to business documents. Electronic invoicing has now become common in the B2B and B2C business landscape, where suppliers and buyers are involved in invoice document exchange.
The first phase of implementation of E-invoicing in KSA is known as the generation phase. This phase will be focused on meeting the essential document requirements that must be met for taxpayers to issue E-invoices.
Basic requirements of the phase are mentioned below:
- Manual issuing of invoices needs to be stopped: Invoices made by using text editing tools and handwritten invoices are not considered as invoices.
- A compliant electronic invoicing solution will be used: All the taxpayers need to have an E-invoicing solution that must comply with specifications and requirements published under laws and regulations of E-invoicing that can be summarized for Phase 1 as follows:
* Generating e-invoice needs to be enabled with other required elements, including QR codes.
* The timestamp of the e-invoice copies needs to be archived.
* Unavailability of illicit functionalities like:
Time change in software
E-invoice or logs tampering
Sequences of multiple invoices
- Required additional fields to ensure invoices:
TAX Invoices: If the buyer is a registered VAT Taxpayer, then the VAT registered number can be added to the invoice type description as a title. QR codes can be added as optional.
Simplified TAX Invoices: For e-invoicing solutions based on ZATCA’s specification, the generation of QR code is mandatory by the taxpayer and the invoice type description as a title.
Steps for readiness in E-invoicing
All the businesses that lie under the reason of KSA are recommended to follow four steps which ensure timely readiness for e-invoicing. These pointers will somehow help them to get prepared for the latest implementation of e-invoicing.
- Businesses need to understand the requirements of e-invoicing and familiarize themselves with e-invoicing leveraging the materials available on the official website.
- The use of compliant solutions based on the requirements of E-invoicing can enable taxpayers to approach a solution provider or their internal technical team to get a new or upgrade to a suitable solution.
- Proper testing of the E-invoice solution should be done by every business before 4th December to ensure that invoices are issued correctly.
- Creating a sense of awareness among your staff, making sure that staff is ready, and making them familiar with your e-invoicing solution.
How do we help you to implement the E-invoicing solution KSA successfully?
Accely’s E-invoice solution specially designed for KSA helps you to stay compliant with the latest implementation of electronic invoicing systems in the KSA region. Some important features of this solution are:
Management of Contingency
This solution enables businesses to carry out usual operations without any disruption, even in a case of system failure.
The GAZT’s XML document can be used by businesses as specifications to validate both issued and received invoices syntactically.
The notices or invoices can be tracked and viewed by the user in both XML and PDF formats along with the audit trails in real-time to GAZT.
The era makes organizing an authorized and stable hyperlink with sixty numerous tax administrators, protecting each B2B and B2C requirements, fantastically simple.
Extraction of Data and its Mapping
In this specific feature, customers can stumble on and map all records primarily based totally on the right XML schema advocated through the GAZT.
Keeping in view all of the policies and pointers that ZATCA has applied on invoicing, we at Accely provide you with an excellent E-invoicing solution, especially for KSA. And on the subject of E-Invoicing in Saudi Arabia, it is excellent to leave it to the professionals! Accely is aware of the want of the hour and assists corporations of all styles and sizes with invoicing solutions. The state-of-the-art amendments via the means of the Zakat Tax and Customs Authority are understood via the means of our professional integration with the Tax Authority (ZATCA).