6 questions to ask about e-invoicing Saudi Arabia

 E-invoicing in Saudi Arabia

Businesses must act quickly to meet the E-invoicing Saudi Arabia deadline of 4 December 2021. This mandate was introduced by the Zakat, Tax and Customs Authority (ZATCA). Suppliers will be no longer allowed to store, generate, or store paper, image format, or PDF invoices. During the preparation and selection of the mandate, clients frequently had questions about the new law. Let's discuss these with you below.

1. We are open to using any software or ERP system to fulfill e-invoicing criteria

Yes, you can use any software and ERP system provided it meets the requirements of different regulations (e.g. e-invoices, VAT, Cloud Computing and Cyber Security. There are three things you need to do first if we are talking about the ability of your ERP system to streamline your processes.

  • It can create an electronic invoice database.
  • Is it possible for a technical interface to be created?
  • Does my software deliver Arabic content?

Storecove can streamline your invoice workflow if you answer yes. If you answered no, then you can use our online portal Storecove to create your e invoices.

 


 

2. Saudi Arabia: Are e-invoices only mandatory for public sector transactions (B2G), in Saudi Arabia?

The mandate does not affect all taxpayers. It covers all B2G and B2B transactions.

The following exempt items are exempt supplies, advanced payment related to exempt supply, reverse charge supplies and import of good.

3. What will Storecove do to cover the Arabic content requirement? Does it come from the ERP?

Translation of invoice data into other languages is a risky business. Storecove doesn't offer a translation tool. Storecove partners do offer managed services for electronic invoicing that include translations as well as other related services. For more information, get in touch.

4. What does "offline archiving of local soil" actually mean?

Offline Archiving means that the structured file, which is the e-invoice, must be digitally archived on a Saudi Arabian server. The archive must also adhere to certain technical specifications.

·         Naming convention

·         Non-tampering

·         Nonrepudiation

5. Is it also a requirement to process inbound electronic-invoices

There is currently no regulation for inbound e invoices. The e-invoicing mandate governs electronic invoice sending. In Saudi Arabia, tax law requires that businesses keep detailed records of all tax invoices.

Saudi Arabia's legal tax invoices will only be available in electronic format starting 4 December 2021. They must be kept in electronic form as they are legal supporting documents to tax obligations like VAT returns.

Moreover, e-invoicing allows you to digitally sign the invoices that are received by your AP function. This is a great way to increase efficiency and lower processing costs.

6. Are there non-Saudi Arabian businesses that can still benefit from this mandate,

From a process efficiency standpoint, digitalization is always a benefit. Transacting business in Saudi Arabia can be improved both operationally as well as from a compliance standpoint by migrating your existing manual AP or AR processes to fully digital ones.

E-invoicing Saudi Arabia Mandate

PHASE 1

Tax payers are required to create and store electronic invoices and notes that comply with the e-invoicing system.

Tax compliant invoices cannot be made by hand or manual.

E-invoices can be generated in any format provided they comply with the Regulations.

QR Code is required for simplified invoices

PHASE2

Integration of taxpayer electronic invoicing systems with ZATCA. ZATCA will integrate targeted taxpayer groups in waves.

ZATCA will notify tax payers at least six months prior to the date of their integration.

Mandatory UUID, Anti-tampering Features such as cryptographic stamp or hash.

All invoices must include a QR Code

How our electronic invoicing works

Our electronic invoicing solution (e-invoice), offers a better service than any other e-invoicing software. Storecove’s integrated electronic invoicing solution allows accounting teams to automate financial document flows between their ERP systems. You can electronically issue, transmit and receive all invoices regardless of your industry.

Related Searches:

India e-invoicing: Mandates to be expanded
  

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