E-Invoicing now become mandatory in Saudi Arabia. E-invoicing is the process of generating digital invoices under the regulation of Zakat, Tax, and Customs Authority (ZATCA) in the Kingdom of Saudi Arabia (KSA), through which you could authenticate B2B, B2G, and B2C invoices electronically and use them wherever required over the common ZATCA portal. 

The General Authority of Zakat and Tax (GAZT) has published new document exchange regulations, including both technical specifications and procedural rules concerning the implementation of mandatory e-invoicing across the Kingdom of Saudi Arabia. All transactions are covered by this regulation and an electronic invoice must be issued for these as well.

The main goal of this decision is to limit the shadow economy, to promote fair competition and consumer protection also, and to combat trade and tax fraud. Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) revealed plans to launch their e-invoicing system (Fatoorah)  in two phases.

With GTS E-INVOICE SAUDI MODULE we make the transition in E-invoicing very smoother for you. A simple and powerful Advanced E-INVOICE MODULE. Automate E-invoicing seamlessly, in compliance with Saudi Arabia's new e-invoicing regulations. Fulfill ZATCA e-invoicing regulations with GTS E-INVOICE SAUDI MODULE.

Who is affected by the e-invoicing regulations?

Taxable people resident in Saudi Arabia will have to issue and store e-invoices in electronic format with predefined data fields. The requirements also apply to third parties who are issuing tax invoices on behalf of resident-taxable people. The e-invoicing rules will not apply to taxable people who are not residents of Saudi Arabia.

The implementation of the e-invoicing system should take place in two phases:

➦ Standard tax invoices are used for B2B and B2G invoices.

➦Simplified tax invoices are used in B2C transactions.

Phase 1: generation phase

Phase 1 is called the generation phase, the taxpayers must create invoices in a structured electronic format, and no format is prescribed. The first phase will come into effect on December 4. It includes the creation of electronic invoices and related documents, as well as provisions for their processing and record-keeping. In phase 1, VAT-registered taxpayers will be allowed to:

  • generate invoices in an electronic format.
  • using an appropriate e-invoicing solution. This can be operated on-premises, in the cloud, or hybrid mode.
  • store e-invoices electronically. 
  • and send a copy of the invoice to the buyer.

For extra security, issuers can choose to include a QR code on B2B invoices, but they must do so on e-invoices issued to final customers (B2C).

When this phase comes into force, manual invoices will no longer be accepted. Businesses, therefore, need to start updating their processes as soon as possible to remain compliant.

Phase 2: integration phase (2023)

Phase 2, includes the most advanced features of the e-Invoicing concept, such as electronic invoice transmission and exchange via the online GAZT platform. The two formats are the Saudi Arabian XML invoice and the PDF/A3 invoice. E-invoicing solutions should also follow some safety specifications such as anti-tampering features, digital signatures, and universally unique identifiers.

All e-invoices will from then on go through ZATCA’s new invoicing platform via an API integration connecting each invoicing system to the central platform.

To guarantee the integrity of the invoices, e-invoicing solutions must include certain anti-tampering features to remain compliant during this phase, such as:

  • a unique universal identifier (UUID) 
  • a digital signature 
  • a hash value.
  • a QR code

Companies implementing e-invoicing after the introduction of phase 1 would be advised to use one of the formats that are set to become mandatory in phase 2 to avoid complications in the future as well.

What makes GTS E-INVOICE SAUDI MODULE the best?

E-invoicing is currently being adopted all across the world. This is a natural evolution of the modern economy and e-invoicing will help modernize each country’s tax infrastructure, increase control by the authorities, and reduce administrative costs. With GTS E-INVOICE SAUDI MODULE make the transition as smooth as possible with our intuitive solutions. GTS E-INVOICE SAUDI MODULE benefits you get are mentioned below.

.  Error-free e-invoicing 

.  Minimal Manual Intervention

. ZATCA e-Invoicing Compliant System

. Track history and take control of your data.

. Advanced Dashboard

Discover how you can future-proof your business with GTS E-INVOICE SAUDI MODULE To get more information about the process and our tailored solutions, please contact us. Working with GEOTECHNOSOFT a well-experienced Odoo partner we provide the best Odoo ERP implementation services in Dubai, India, and other Middle Eastern countries, ensuring maximum output and meeting all the expectations.