The General Authority of Zakat and Tax (GAZT), also known as The Zakat, Tax and Customs Authority, released its new e-invoicing (FATOORAH) regulations on December 4, 2020. Before December 4th 2021, all organizations and people liable to VAT must create systems for creating and storing e-invoices.
Saudi Arabia intends to use the new e-invoicing mandate to adopt global standards and boost tax compliance. Through this new regulation, the monarchy also seeks to lessen the shadow economy and commercial secrecy.
Everybody who is liable to VAT will need to create and keep electronic invoices in a format that complies with the new law. The new e-invoicing legislation applies to third parties as well who send tax bills to residents' behalf.
A tax invoice must be created and stored in a structured electronic system to be considered an electronic invoice (or "e-invoice," as the term is known). E-invoices do not include any scanned or handwritten invoices. E-invoicing solutions must be impenetrable, and suitable controls must be put in place to guarantee data integrity. Additionally, it should be able to interface with external systems using an API (APIs).
Electronic invoicing (e-invoicing) becomes mandatory in the Kingdom of Saudi Arabia with Phase 1 coming into effect from 4 December 2021.
Taxpayers must be able to create and save Tax Invoices and Credit/Debit Notes online under the terms of this first phase of the new regime using a fully compliant software system. Companies must make sure they are compliant from the beginning because this is a two-phase procedure.
Technology must adhere to the guidelines and standards outlined in the Zakat, Tax and Customs Authority's e-invoicing laws and regulations (ZATCA).
Produce digitized invoices with all required details, including QR codes. and the solution's preserved electronic invoice copies with a timestamp
If the buyer is a registered VAT taxpayer, the tax invoice must also include the buyer's VAT registration number in addition to the invoice type description as a title. You can include a QR code (this is optional).
In addition to the invoice type description in the title, Simplified Tax Invoices must also have a compatible QR code.
The ZATCA-required generation of Tax Invoices and related Debit/Credit Notes includes all needed information, including QR Codes for Simplified Invoices. This can be generated in bilingual, English, or Arabic versions.
The system, which was created especially to satisfy Saudi Arabia's changing e-invoicing needs,
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