E-invoicing (electronic invoicing) is a new-age procedure that fully replaces issuing paper invoices and notes (such as, scanned or handwritten notes and invoices and notes) via an electronic process. E-invoicing uses a structured electronic format.
The General Authority of Zakat and Tax (GAZT) of the Kingdom of Saudi Arabia (KSA) has announced the mandatory roll-out of e-invoicing. Phase 1 (General Phase) was enforced on December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT.
Phase 2, (Integration Phase) will be rolled-out in waves by the targeted taxpayer groups (banks and financial institutions) and will be effective from January 1st, 2023. This phase will involve integrating technical and business requirements for electronic invoices and solutions with ZATCA's systems.
Taxpayers who are not residents of KSA are not subject to e-invoicing regulations.
Heavy reliance on manual processing
Wide range of formats and standards
Changing tax environment (electronic layout changes) and regulations
Prohibition in exporting data outside KSA
Security/data privacy concerns
Certification / authentication for authorization to issue e-invoices
Single invoice sequence number for all invoices and their associated notes
Invoices will need to have all mandatory fields as per VAT and ZATCA guidelines
Store invoices electronically with specified naming convention. No specific format (XML or database etc.) for storing or sharing invoices
100% match of e-invoices and invoices reported in VAT
Integrate e-invoicing solutions with ZATCA's system for real-time QR code generation
Implement TAX, TRADE, and COMPLIANCE policies that support and align with your business and regional regulatory policies.
Our rich experience in the Middle East positions us to help our customers get ready in time for this mandate so that they can smoothly comply with ZAKAT's e-Invoicing regulations.
Mastek has extensive experience in advising clients in implementing e-invoicing in multiple global jurisdictions.
Transition Smoothly to Mandatory e-Invoicing in the KSA