FATOORAH

e-Invoicing regulations
in Saudi Arabia

Project

Project e-Invoicing in Saudi Arabia

The Zakat, Tax and Customs Authority (ZATCA) announced the introduction of an e-invoicing law on 4th December 2021.

According to the regulations, the electronic invoice is an invoice generated, stored, and amended in a structured electronic format through an electronic solution. Paper, unstructured data files, word, excel, PDF or scan copies of images are not considered e-invoices.

Requirements

Connect to the Internet.
Connect with external systems using the API.
Be tamperproof and include a mechanism that allows detecting any tampering performed.
Consider all requirements which relate to data or information security or cybersecurity.

Persons subject to this Regulation:

✓ Taxable person subject to VAT.
✓ 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 the VAT Implementing Regulation.

Persons subject to this Regulation must issue Electronic Invoices in respect of all their transactions which require the issuance of tax invoices, in addition to issuing Electronic Notes in cases that are required by the VAT Law and its Implementing Regulation.

Implementation phases

Phase One – Generation Phase
December 4th, 2021

Taxpayers are required to generate, store and issue an electronic copy to the customer of compliant electronic tax invoices and notes using compliant e-invoicing systems.

Phase Two – Integration Phase
January 1st, 2023

Integration of taxpayer e-invoicing systems with ZATCA in waves by targeted taxpayer groups. Taxpayers Will be notified by ZATCA on the date of their integration at least 6 months in advance.