The digital transformation wave has spread across the globe without excluding any region. This has led many organizations and business owners to take a moment and reconsider smarter alternatives capable of getting them into the market of tech solutions while figuring out ways to unite it with the business world with its versatile niches.
And that is exactly what we have come to witness in Saudi Arabia at the current time as it has successfully managed to hop on the wave of digital transformation with outstanding potential. Hence, making the difference caused by adopting technology in everyday tasks something worth the effort to work so hard for without falling into gaps while making this jump a reality. As a result, converting from traditional solutions to smart solutions became a tangible reality that all communities could touch and feel with zero complexities faced.
That being said, the move towards the cancellation of paper invoices all over the kingdom and replacing it with an electronic invoicing system has been raised, in hopes of replacing paper-based tasks with digitally-based solutions. So, what do you know about Electronic Invoicing? Let us help you a bit with this.
What is Electronic Invoicing?
It can be defined as the process by which paper invoices are digitalized through an invoicing system capable of making that happen correctly, like the one we have at InvoiceQ. The system used to achieve this can vary depending on the organizational needs among many available at the moment. However, bear in mind that such systems have to be ZATCA approved. This is to guarantee that the organization is not violating any listed rules that may require them to pay fines or receive warnings.
The invoice is issued by the organization via systems prepared to generate various invoices, all of which abide by the rules set by the Fatoorah platform digitally to eliminate the need for any traditional methods between the buyer and the customer. It’s necessary to know that scanned invoices are not considered electronic invoices, as they should be issued by a specialized system approved by ZATCA.
Luckily, at InvoiceQ, we have a centralized solution that enables you to issue your digital invoices and manage your organization’s needs according to the latest updates in the field. We offer customizable solutions specifically tailored to your needs and they’re ZATCA-approved so no need to worry!
Saudi Arabia: How is Electronic Invoicing Executed?
The initiative to be part of the digital transformation jump and to join the electronic invoicing world has been carefully prepared to ensure that everything is being executed according to a well-crafted plan that accommodates various organizational needs, revenue, and services offered. The first phase was enforced on December 4th, 2021. The details of this stage and how to get started have been shared through strategized steps making the change process for organizations seamless and handled via multiple steps and a reasonable notice period to make the necessary changes with utmost ease.
This stage has included all taxpayers in Saudi Arabia (excluding non-resident taxpayers) and any other parties issuing tax invoices. Furthermore, the use of paper invoices and invoices written by hand or through writing assistance tools has been prohibited. On top of other conditions such as:
- Supports QR codes for all issued invoices.
- The system should be ZATCA approved and doesn’t authorize things like invoice and record manipulation or generating more than one invoice sequence.
This phase is still being enforced at the moment and started on the first of January 2023. What’s remarkable about this phase is the fact that it’s been divided into smaller waves to ease the enforcement process of the intended goal in a slow-paced manner to ensure accuracy in achieving results.
The second Phase includes the following waves:
- First wave: From 1/1t to 30/6, 2023.
- Second wave: From 1/7 to 31/12, 2023.
- Third wave: From 1/10, 2023, to 31/1, 2024.
- Fourth wave: From 1/11, 2023, to 29/2, 2024.
- Fifth wave: From 1/12, 2023, to 31/3, 2024.
- Sixth wave: From 1/1, 2023 to 30/4, 2024.
- Seventh wave: From 1/2, 2024 to 31/5, 2024.
The upcoming phases will be announced soon on the ZATCA platform.
Benefits of Utilizing an Electronic Invoicing System
The decision to utilize electronic invoicing systems was not random at all, as the vision was to create innovative solutions that could keep up with technological advancements without missing any security holes. Some of the most distinguishing benefits these systems have managed to add are:
- Raise tax compliance levels for organizations and control any shady attempts as the system has to be connected with the Fatoorah platform to track any suspicious moves.
- Managing finances easier and faster by relying on resources that help decrease the need for the human factor in handling small tasks.
- Creating unified standards for invoice issuance that follow standard regulations set by ZATCA, thus ensuring fair rules with no biases.
- Recognizing forged invoices and any foul attempts to cross the law.
- Raising revenue by adopting smart invoicing systems that provide customers with various advanced payment options to save them time and effort.
- Providing versatile options that fit each organization’s needs.
How to Get Started?
At InvoiceQ, we work on supporting you with a plan that works for your goals and needs in case you’re aware of them. However, if you have no clue that is totally fine! We’re here for you. All you have to do is contact us to get a consultation with us and figure out what works best for you. You can also ask for a system demo to help make the right call by trying out our system in advance. So, what’s keeping you still? Hurry up and join the electronic world of invoices.