Considering the Middle East, Saudia Arabia will soon be the first country to enforce E-invoicing as necessary for Businesses. e-invoice GAZT(General Authority of Zakat and Taxes) recently released the guidelines regarding e-invoicing in Saudi Arabia. The technical information and requirements are specified precisely in the guidelines.

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Joining hands with the Customs Authority, GAZT is now known as ZATCA (the Zakat, Tax and Customs Authority). Similar to the rest, E-invoicing is implemented to improve the tax collection system. To prevent tax fraud and achieve transparency of trade transactions, E-invoicing is considered favorable.Learn about the transformation of businesses in KSA and the expected after-effects on them below:

The expected arrival of e-invoice GAZT in Saudia Arabia and its requirements:

Saudia Arabia will use a two-phase implementation of an E-invoicing System.

The first phase

December 4, 2021, is set to be the initiation date of the first phase. Beyond this timeline, E-invoicing for taxpayers will be mandatory, for they will be permitted to generate, store and customize the invoices. A particular layout for e-invoices, electronic credit, or debit notes will not be required. However, critical information such as the QR code must be included. Interference with Invoices will not be allowed. In addition, multiple sequenced invoices are also not permitted.

The second phase

The initiation date for the second phase is January 1, 2023. By this timeline, الفاتورة الالكترونيةand electronic notes of businesses will be expected to log into ZATCA’s electronic system. B2C invoices are supposed to be sent within 24 hours, whereas B2B invoices will have a clearance model.

Through the second phase, the Saudi Government will shift onto the CTC (Continuous transaction controls) system. UBL-based XML format will be used to produce invoices. XML embedded with either XML or PDF/A-3 format is also used to create invoices sent to buyers. B2C transactions will require simplified invoices to print out.

Necessities for E-invoicing Solutions in Saudi Arabia

KSA government expects a series of features to be present in the e-invoicing solutions during the second phase. Invoices should possess:

  • A UUID (Universally Unique Identifier) generator
  • A hash and a cryptographic stamp generator
  • A security layer that prevents vandalizing and unauthorized customizations
  • An archive to store generated الفاتورة الالكترونية, both internal and external
  • A QR code generator.

Restriction of the time change and stamp key export is also implemented.‍We know that new guidelines significantly affect how organizations work. That is the reason we constructed Fonoa Reporting, an answer that naturally reports deals exchanges to burden specialists all throughout the planet. ‍If your business is influenced by ongoing receipt revealing commitments anyplace on the planet, contact us, and we will assist you with mechanizing the receipt detailing measure.