The Kingdom of Saudi Arabia has gone the distance to make E-Invoicing a national system that organizations can implement according to dynamic strategies that follow high accuracy levels. This comes hand in hand with the Saudi Vision for 2030 whose goal is to achieve digital transformation, uncover commercial cover-ups, and mitigate the shadow economy and its dangerous consequences as mentioned in edition (73) of ZATCA’s magazine
How Did ZATCA Manage to Achieve That?
The evident success of the poured-out efforts was noticed through the documentary ZATCA shared in August 2023, which highlighted the impact of enforcing E-invoicing solutions in Saudi Arabia. As it helped bring down crime & tax evasion rates as well as support the national economy.
Some of the essential details shared included:
- The government’s effort to include everyone in the National E-invoicing system.
- Joint efforts between the public and private sectors to achieve success.
- Automating all processes to decrease the reliance on the human factor.
- Updating the infrastructure to meet the digital transformation needs.
- Simplifying execution and integration by assigning different stages and waves.
1- More than 400 million invoices have been shared through ZATCA’s official platform, Fatoora.
2- More than 14000 E-Invoicing systemshave managed to connect with the Fatoora platform after meeting the requirements to be qualified by ZATCA.
Phases And Waves
E-Invoicing in Saudi Arabia has been rolled out in two different phases, the Generation Phase and the Integration Phase.
The Generation Phase:
The first phase was rolled out on December the 4th, 2021. The details of the Generation Phase have been shared through systematic steps and carefully crafted strategies.
Who is Included in This Stage?
This stage has included all taxpayers in Saudi Arabia (excluding non-resident taxpayers) and any other parties issuing tax invoices.
What Are The Most Remarkable Outcomes of This Phase?
- Canceling paper invoices, handwritten invoices, invoices written through other systems than the approved E-invoicing system, and any similar system.
- Supports QR codes for all issued invoices.
- The system should be ZATCA-approved & adhere to ZATCA’s regulations.
- Prohibiting invoice & record manipulation or generating more than one invoice sequence.
The Integration Phase:
The Integration Phase was rolled out on January the first, 2023, and is still ongoing. This phase has been divided into multiple waves and organizations are notified of their turn to be included in the wave 6 months before the decision becomes mandatory. This comes as an attempt to help them prepare and become compliant to avoid any fines for violations.
The Second Phase Includes the Following Waves:
- First Wave: 1/1 To 30/6, 2023
- Second Wave: 1/7 To 31/12, 2023
- Third Wave: 1/10, 2023, To 31/1, 2024
- Fourth Wave: 1/11, 2023, To 29/2, 2024
- Fifth Wave: 1/12, 2023, To 31/3, 2024
- Sixth Wave: 1/1, 2023 To 30/4, 2024
- Seventh Wave: 1/2, 2024 To 31/5, 2024 Eighth Wave: 1/3, 2024 To 30/6, 2024يةٍ.
ZATCA Releases Fatoora Documentary
As highlighted in the documentary, E-invoices play an essential role in the following areas:
- Protecting the seller and buyer’s rights by including details that show the suppliers’ information, purchase details, added tax value, purchase date, and much more.
- Taking action against violations and encouraging citizens to report them.
- Replacing all paper invoices and placing fines on those who have been included in the waves shared so far and have not complied with the rules for reasons such as commercial cover-ups.
- Enhancing work productivity and financial management of the organization’s accounts.
- Boosting electronic alternatives for the traditional solutions.
- Increasing tax compliance rates with the standard regulations.
How Does InvioceQ Help You Achieve Compliance With ZATCA?
At InvoiceQ, we provide diverse solutions in the E-Invoicing sector that include using the E-invoicing system we offer or getting integration help to connect with ZATCA if you’re unable to do that on your own. Our integration solutions are recognized by others for their dynamic options that enable any system implemented to be integrated with ease. This makes us your perfect choice to work with as you won’t need to change anything or worry about data transfer and security. Our team of experts is capable of giving you the tailored support you need for your business through our expert one-to-one consultation with you. By doing so, we enable you to get a free sneak peek of the system before you make the purchase decision.