E-invoicing (FATOORA) is mandatory for the resident taxpayers or any other parties issuing tax invoices on behalf of suppliers, subject to VAT, to prepare them to be able to issue, document, and modify E-invoices by 4 December 2021.
In short, it applies to all the taxable supplies made to a resident or non-resident consumer. Before beginning with the generation of e-invoicing in KSA, the first thing to keep in mind is that where you lie following its phases and timelines to get right and exact standardizations for your e-invoices through e-invoicing solution.
Also Read: Everything About KSA e-Invoice System
Do Not Get Confused With the Phases & Timelines of E-Invoicing In KSA
KSA has enabled the implementation in phases of e-invoicing in KSA:
This is the ‘’Generation Phase’’ which will be enforceable from December 4, 2021. This phase decodes the basic requirements to be followed to make taxpayers capable of issuing E-invoices. In this phase, taxpayers are not required to approve, clear, or report invoices to ZATCA.
Requirements in the Generation Phase:
Phase one mandates for the taxpayers to be able to generate and store the tax invoices and the debit, credit notes in a structured electronic format issued through an electronic solution.
To be able to generate E-invoice one must first install and update the new invoicing system.
For B2C transactions-A mandatory QR code and a Title to the invoices.
For B2B transactions- An optional QR code and mandatory Invoice title.
The taxpayer should update the buyers' VAT Registration number if registered for VAT.
This is the integration phase which will be rolled out in different stages starting from January 1, 2023.
This phase tells us the technical requirement and linkage process with ZATCA. Taxpayers will be notified by ZATCA on the date of their integration at least 6 months in advance.
Requirements in the Integration Phase
The most important part of the second phase involves linking the taxpayer’s system of issuing invoices and notes with the ZATCA system to share the data and information.
The taxpayer should be able to generate a cryptographic stamp for each E-Invoice or note.
In addition to the invoice sequence number, generate a Universally Unique Identifier (UUID).
Install certain functionalities which will help them to save E-Invoices and archive them.
Implementation of Anti tampering features.
Generate a hash for the E-Invoices issued.
Things to be avoided in the Integration phase:
Export of stamping key.
Some timelines issued: A clearance regime has been prescribed for the B2B invoices but for B2C invoices they must be reported to the tax authority platform within 24 hours of its issuance.
All the details of the requirements including procedures for the above phases shall be issued no later than 180 days from the date of publication of regulation i.e., December 4, 2020
How To Make Your E-Invoice Align With Its Standardization?
Webtel’s e-invoicing solution is at your service from managing all your in and out e-invoices to the provision of the extension with any ERP systems of e-invoicing in KSA.
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.
Webtel utility provides for various methodologies with which the integration can be done with ERP like Direct integration with SAP, integration through APIs, FTP, excel mapping, web application, and much more. So, with Webtel’s e-Invoice get everything done right in one place.
Also Read: Myths Regarding e-Invoicing in KSA