Saudi Arabia E-invoicing phase two | Preparing your business with ERPNext

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Saudi Arabia E-invoicing phase two FAQ

The enforcement date for the first target group will not be earlier than January 1, 2023. And ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance​

- Phase 2, which will be implemented in waves by target taxpayer groups starting from Jan 1st, 2023, entails additional technical requirements that e-invoicing electronic systems must comply with, the integration of taxpayer electronic systems with ZATCA and the issuance of electronic invoices in a specific format. 

- Due to the technical nature of the published requirements, it is recommended for taxpayers to approach a solution provider or your internal technical teams to ensure your electronic systems are compliant with ZATCA requirements. In addition, developers and subject matter experts may visit ZATCA's website for viewing all requirements (business, technical, security, etc.).Further details on the integration mechanisms and specifications will be published by ZATCA on the developer page on ZATCA's website.

- All prohibited functionalities. that are part of Phase 1

- Export of stamping key.

- Time change.

- For additional details on the prohibited functionalities, please refer to Annex (1) “Technical Requirements of E-invoice Generation Solutions” in the resolution.

​- Phase 2 known as the Integration phase. during this phase. subjective taxpayers must comply with Phase 2. business and technical requirements for the electronic invoices and electronic solutions, and the integration with ZATCA's system.

  • Phase 2 is 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.​

- Please refer to the “Invoicing and records guideline” section 4.1.2 here.

- Please also note that e-invoices are not required for the following transactions: 

- Exempt supplies.

- Import of goods.

- Supplies subject to reverse charge mechanism.

​Yes, however, Non-resident taxable persons for VAT purposes are excluded.​​

No, Persons subject to the E-Invoicing Regulation may use any invoicing systems, provided that it complies with the requirements of the Authority. 

The period for storing/keeping invoices does not differ from the period specified according to the statutory requirements in the Implementing Regulations of the Value-Added Tax Law.