E-Invoice Implementation for KSA
The implementation of e-invoicing has become compulsory in Saudi Arabia (KSA).
Benefits of E-Invoice Implementation for KSA
It is essential that all e-invoices are promptly reported and validated in real-time with ZATCA. Consequently, all VAT-registered taxpayers are obligated to generate and submit e-invoices containing specific content in a structured format, as well as securely store them in accordance with the regulations. As a result, suppliers are prohibited from creating or retaining paper or PDF invoices.
Electronic POS Solutions for ZATCA
As of January 1, 2023, the e-invoicing mandate in Saudi Arabia has been completely enforced. all taxpayers registered for VAT must comply with the requirement of generating and submitting e-invoices in a structured format.
Scope of E-Invoicing
Taxable Persons subject to E-Invoicing
- All Taxable Persons subject to E-Invoicing Regulations are obliged to generate E-Invoices for all their transactions for which Tax Invoices must be issued, in addition to the electronic notes that must be issued in the cases stipulated in the VAT Law and its implementing regulations
- Taxable Persons who are subject to the E-Invoicing Regulation include:
- Taxable person that is a Resident of the Kingdom .
- The customer or any third party that issues a Tax Invoice on behalf of the taxable person that is a Resident in the Kingdom according to Article 53 (3), on the amendment of VAT Implementing Regulations which was approved by the Authority in 2021/11/09 that implemented on Dec. 4th, 2021.
Frequently Asked Questions
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What is Phase 2? When will it be enforced and to whom does it apply?
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 E-Invoice 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.
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How will ZATCA notify taxpayers about their integration wave?
The enforcement date for the first target group will not be earlier than January 1, 2023. ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance through Official emails & SMS registered with ZATCA
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Can a taxpayer use the same E-Invoice Solution that was used for Phase 1?
A taxpayer can use the same E-Invoice Solution that was used for Phase 1, by updating the EInvoice Solution to comply with the Phase 2 requirements.