Introduction to E-Invoicing in Saudi Arabia | Compliant With GAZT

What is electronic invoicing? Electronic invoicing will be rolled-out in two phases in KSA (more details about the phases here [link to the following page]). For the first phase, enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to today, with invoices issued through a compliant electronic solution and including additional fields depending on the type of the transaction ERPNext E-Invoice Saudi Arabia Compliant With GAZT

What is e-invoicing?

ERPNext E-Invoice Saudi Arabia Compliant With GAZT

​​​​​​What is E-Invoicing (FATOORAH)?

Electronic invoicing is a procedure that aims to convert the issuing of paper invoices and notes into an electronic process that allows the exchange and processing of invoices, credit notes & debit notes in a structure electronic format between buyer and seller through an integrated electronic solution.

What is an electronic invoice?

A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that converted into an electronic format through coping, scanning, or any other method is not considered an electronic invoice.

Tax Invoice

An invoice that is usually issued by a Business to another Business (B2B), containing all tax invoice elements.​

Simplified Tax Invoice

An invoice that is usually issued by a Business to consumer (B2C) containing all simplified tax invoice elements.​

How does E-Invoicing (FATOORAH) work?

E-Invoicing will be rolled-out in two phases in KSA (more details about the phases here​). For the first phase, enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to today, with invoices issued through a compliant electronic solution and including additional fields depending on the type of the transaction:​

E-INVOICING (FATOORAH) IMPLEMETATION IN KSA​

​ Roll-out phases ZATCA has published e-invoicing requirements that will be rolled-out into two main phases in KSA

PHASE 1 (as of December 4th, 2021)

Phase 1, known as the Generation phase, will require taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements. Phase 1 is enforceable as of 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 ​ (starting from January 1st, 2023)

Phase 2, known as the Integration phase and rolled-out in waves by targeted taxpayer group, will involve the introduction of Phase 2 technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s systems. ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance, and the enforcement date for the first target group will not be earlier than January 1st, 2023.​​

KSA E-Invoicing Roll-out Phases ENG

Guidelines

​​​​ ​​SIMPLIFIED GUIDELINES FOR E-INVOICING PHASE 1

​​​​This guide contains the requirements for all taxpayers subject to the E-Invoicing Regulation to prepare and update their invoicing systems to issue, amend and save invoices electronically.

​​E-INVOICING DETAILED GUIDELINES

This guide contains requirements for E-Invoicing (FATOORAH) as well as technical and security requirements for taxpayers and E-Invoicing providers. It also includes detailed technical requirements such as invoice specifications, data dictionary and security specifications for the E-Invoicing application.​​​​

FAQ

E-invoicing will be implemented in two phases: - Phase One, known as the Generation phase and enforceable as of December 4, 2021. - Phase Two, known as the Integration phase and 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 requirement phasing is summarized here​
  • For additional details, please check the simplified guideline​​

The technical requirements are typically implemented by solution providers (e.g. cash register vendors, software vendors) or the internal technical teams for in-house built solutions. Taxpayers may approach a solution provider or their internal technical teams to acquire or upgrade to a compliant electronic system; and make sure they are generating compliant invoices starting from December 4th, 2021.​

​E-invoicing applies to all persons subject to VAT and any other parties issuing tax invoices on behalf of suppliers subject to VAT. Non-resident taxable persons for VAT purposes are excluded.​​

ERPNext E-Invoice Saudi Arabia

ERPNext E-Invoice Saudi Arabia Compliant With GAZT