What is an E-Invoice in Saudi Arabia? And Why Should You Use It?
Who can use e-invoices in Saudi Arabia?
The B2B, B2C,and B2G sectors are required to implement the e-invoicing regulations. It could affect taxpayers who reside in the country. However, It will also affect third parties, and agencies can issue invoices for a remunerator subject to VAT.
Definitions and technical solutions as determined by GAZT within the context of E-invoice in Saudi Arabia
E–Invoice: This is a tax invoice generated electronically in a structured format.
Electronic notes: Credit and debit notes have been issued under the VAT Law and its Implementing Regulation. They are issued electronically through a structured electronic format.
Integration of electronic invoicing systems: integration of the ZATCA Approved e-invoicing software for supplier invoices and electronic notes with Authority systems. To share information and knowledge under the controls, technical requirements, and procedural rules that a Governor resolution can approve.
Electronic Invoice software solutions will be used to issue the e-invoices and electronic Notes. And, will be able to communicate with external systems via the Appliance Programming Interface (API).
However, The technical answer to the issue and Electronic Notes is that it is tamperproof. Since It can include a mechanism that allows for detecting any state change made by either the user or the other party.
Timelines for e-invoicing to start:
GAZT has established two stages for e-Invoice in Saudi Arabia setup. The preparation section is the first unit, while the second unit aims to introduce the new billing system.
Phase 1: The area units of the firm are expected to be given technical training to create electronic invoices and credit or debit notes in a structured format within twelve months after the approval for asking arrangements. Thus, These documents should be generated using an electronic answer. They must also be able to be stored electronically.
Phase 2: All VAT-exempt businesses should start to store and issue electronic invoices and credit notes. Since, It will allow them to justify the sale of their products and services. GAZT approved the electronic data exchange system to address these problems.
GAZT, on the other hand, stated the requirements, details, and strategies for the blending of e-Invoice answers, in addition to the implementation stages area unit aiming at being issued within a maximum of a hundred and eighty-day from the publication date.
How do you get compliant with ZATCA re-invoice requirements?
The secret of getting compliant with all ZATCA requirements is hidden in integrating the e-invoicing software Saudi Arabia into your accounts receivable and payables system. As a result, Absolute Solutions, the best IT Company in Riyadh, has developed a complete e-invoicing solution to address all ZATCA requirements. This e-invoicing software is capable of generating e-invoices with all requirements. It is secured and comes with 24/7 customer support.
The E-Invoice in Saudi Arabia is an effective tool to stop the country’s informal economy and tax evasion. In addition, It also helps to ensure shopper rights and fair competition in the market. However, In future, with e-invoicing implementation the Saudi Arabia’s value is will increase in the global market context.