5 Key Questions About E-Invoicing In Saudi Arabia
ZATCA (the Zakat, Tax and Customs Authority) has passed laws that have made E-invoicing mandatory for all kinds of businesses, canceling out the use of paper invoices. And, PDF invoices have also been forbidden for use.
The implementation of the e-invoicing laws will take place in 2 phases. The date for the first phase was December 2021, while the second will happen in 2023.
The use of an electronic tax invoice system has been made mandatory by ZATCA for all businesses.
Below we’ve answered a few crucial questions regarding ZATCA’s regulations.
Has The QR CODE Become Compulsory?
The production of QR CODE has now been made compulsory in Phase 1. And, this is aimed at B2C invoices.
Has The Processing Of Inbound Electronic Invoices Become Necessary?
There is not any such obligation at this very moment. Only the forwarding of e-invoices has been regulated. Within Saudi Arabia, all businesses, and companies are bound to archive and document every single tax invoice.
According to the first phase of the ZATCA law, all tax invoices should be recorded and stored digitally to allow for the easy fulfillment of tax requirements.
Is E-Invoicing Only Aimed At The Public Sector In KSA?
E-invoicing has been made compulsory for all sectors, bringing under it every taxpaying group. B2B, B2C, and B2G businesses, and dealings fall in this category.
Can You Elaborate On “Offline Archiving On Local Soil”?
This actually means that electronic invoices have to be archived and recorded into an in-house cloud-based server within Saudi Arabia, and all archiving requirements should be strictly adhered to.
Access should be open to authorities when the need arises. There should be tools within the system to allow for the non-tampering of the archive.
Can We Just Utilize Any ERP System To Fulfill These Requirements?
There is no limit on what system you can utilize. Just ensure that the e-invoicing cloud-based software you use is in full compliance with all the regulations put forward by ZATCA. This includes features such as digital archiving, VAT, electronically generated invoices in XML format, complete data security, anti-fraud tools, should have the tools to provide material in Arabic, etc.
If your chosen software is missing any of this, you should opt for one that meets all these demands.
Conclusion
This brings us to the end of our post. We hope we covered all the questions that you were seeking answers to.
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