Fatoora Guidelines & Standards of e-Invoicing in KSA on your Finger Tips

You must be very well aware of the fact that The General Authority of Zakat and Tax's previously published draft order specifying the procedural rules for implementation of the E-Invoicing Regulations but recently on 4th May 2021 General Authority of Zakat and Tax (GAZT) merged with the General Authority of Customs to form the Zakat, Tax and Customs Authority (ZATCA), and soon on 28 May 2021, ZATCA published guidelines and standards regarding the implementation of online invoicing in KSA.

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Inclusions in the FATOORA Guidelines of Online Invoicing In KSA

FATOORA guidelines include terms, requirements, and conditions related to E-Invoicing and Electronic credit and debit notes. All the E-invoices must be in UBL-based XML format, although the exact format of the invoice is yet to be formally published. It is hereby clarified that in addition to this regulation the provisions of VAT Legislation and provision relating to the proof of electronic transaction and electronic signatures provided for in the Electronic Transaction law in force in KSA shall apply to all the invoices and notes issued.

Moreover, the maximum e-invoicing regulations are now more readable and understandable in English than the regional dialects of Saudi Arabia. The GAZT Saudi Arabia has launched a full-fledged guide on e-invoicing GAZT along with the online invoicing in KSA frequently asked questions clearing out the major obligatory doubts on compliance under the up-to-date regulations of taxpayers.

E-Invoice System Requirements in KSA at A Glance

Following are the requirements:

• To start with there should be a proper internet connection for generating E-invoices.

• Before installing the new E-invoicing system first evaluate the readiness of the existing billing system and try to reconfigure it to meet the E-invoicing requirements.

• Assess the current Arabic language capability of the system and what changes it requires to be able to generate the invoices in the Arabic language.

• The solution providers or the internal technical teams will implement the technical requirements for the in-house built solutions.

• The solution providers or the technical team should upgrade the system to a compliant electronic system.

• The system should be able to generate the invoices in UBL-based XML format.

• Potential changes as per the regulation should be made to the system keeping in mind the indicative timeline.

Further, the system, master data, reporting requirement, the actual design should be updated as and when notified by ZATCA.

Generate E-Invoices under E- Invoicing Guidelines

Saudi Arabia has made themselves very much clear about the objectives of their long-term goals on the implementation of e-invoicing GAZT. There is an active availability of proper documentation along with the opportunities to mark any kind of feedback, whether positive or negative, on the published document for each phase. However, a few of the details remain confusing.

Despite everything, the priority of the scenario is to get a handy e-invoicing solution in line with the FATOORA guidelines and standards of online invoicing in KSA, similar is the functionality of Webtel's e-invoice solution that will generate, print, and track e-Invoicing as per the proposed format.

Webtel ‘e’ invoice utility is also capable of generating E invoice and notes in XML, PDF with embedded XML as per the requirements through Web Utility or Seamless integration with ERPs. It also provides for generation of UUID providing multiple auto validation of data to ensure compliance of the law. For simplified ‘e’ invoices and notes, business will need to register with ZATCA to obtain a Digital Signature Certificate (DSC) to request Cryptographic stamp Identifier for its E invoicing Solution. Webtel ‘e’ Invoicing solution proposes to establish a connection with an external APIs between taxpayer’s E-invoicing solution and ZATCA to periodically upload simplified e-invoices and E-notes, as well as transmit e-invoices and E-notes to receive a response in real time. The ZATCA will provide the details around timelines, targeted groups and implementation phases of the integration in subsequent resolutions.