Erpisto #1 E Fatoorah in Saudi Arabia The complete requirements for Implementing the Provisions of the E-Invoicing Regulation in Saudi Arabia have already been released by ZATCA (Zakat, Tax and Customs Authority, previously known as GAZT). The crucial point to remember is that the e-invoicing legislation will reduce VAT leakage, assist in the transition to a cashless economy, and reduce the shadow economy. Fraud and tax evasion will be reduced as a result of the move from paper-based to electronic invoices.
Erpisto #1 E Fatoorah in Saudi Arabia
Taxpayers will no longer be able to generate or store paper or PDF invoices under the Kingdom’s e-invoicing system (also known as Fatoorah). Finally, they are required to use the e fatoorah in Saudi Arabia.
Overview
The “issue and storage” phase of e-invoicing begins on December 4, 2021, and enables taxpayers to release and retain electronic invoices and notes.
The second phase, known as “integration,” will start on January 1, 2023, and will compel taxpayers to provide electronic invoices and notes to ZATCA for electronic validation and certification.
Implementation guidance
The ZATCA provided the following advice for phase one e-invoicing implementation on May 28, 2021:
Controls, requirements, technological specifications, and procedural guidelines for putting the e-invoicing standards into action.
The e-invoicing guidelines have been simplified.
FAQs for the first phase of e-invoicing
XML implementation guidelines for electronic invoices
Implementation standards for electronic invoice security
The recently released guidelines and standards encompass the definitions of e fatoorah, e-invoice, tax invoice, simplified tax invoice, e-invoicing solutions, and QR code, as well as other important words and methods for implementing e fatoorah in Saudi Arabia.
Steps to take
What needs to be done in the first phase:
- Updating or putting in new billing systems
- Adding QR codes to invoices is a great way to save money.
- If the buyer is VAT registered, include their VAT registration number.
During phase one, e fatoorah will work as follows:
- The seller creates and saves the invoice using an e fatoorah in Saudi Arabia that meets the first phase’s requirements.
- All of the items necessary in a tax invoice must be included in the invoice.
- A copy of the invoice is sent to the buyer.
When creating electronic invoices, stay away from the following:
Invoicing by hand
- Issuing invoices that do not meet the ZATCA’s requirements
- Using a system that does not meet with the ZATCA’s e fatoorah requirements
- Delete electronic invoices once they’ve been sent out
- What is optional in the first phase but will be implemented in the second:
- Invoices in XML and PDF/A-3 formats are available.
- Anti-tampering features are being implemented.
- Other technological aspects, such as a universally unique identity, are being implemented.
- Getting the ZATCA systems to work together
Services We Offer:
· Automatically receive and send invoices
· Multi-currency, invoice customization
· Support all invoice formats
· Integrate with existing systems
· Archiving capabilities
· Multiple forms of payments
· Integrate analytics
· Safety and support
· Invoice number.
· Reminder For Invoices
· Terms and conditions.
· A line detailing each product or service
· Real-time tracking of invoices
· One-time reporting of B2B invoices
· Easy creation of e-way bill
· Helps the buyers
· Reduction in frauds
· Reduction in data entry errors
· Allows interoperability
· Curb tax evasion
· QR code
ChecPOS 