In Saudi Arabia, e-invoicing regulations, introduced by the Zakat, Tax, and Customs Authority (ZATCA), aim to enhance tax compliance and reduce evasion. Key points include:
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Mandatory E-Invoicing:
- Phase 1 (since Dec 4, 2021): Businesses must issue electronic invoices in digital format.
- Phase 2 (since Jan 1, 2023): Systems must integrate with ZATCA's platform for real-time data sharing.
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Technical Specifications:
- Invoices must be in XML/PDF-A3 format, with a QR code and mandatory details like VAT numbers, invoice number, and total amount.
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Integration:
- Businesses must connect their systems to ZATCA’s platform via an API for automatic data exchange.
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Exceptions:
- Certain transactions, such as those with government entities or small businesses, may be exempt.
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Penalties:
- Non-compliance can result in fines and sanctions.
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Security:
- Data protection standards must be followed to ensure secure invoice transmission.
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Updates:
- Regulations may be updated, and businesses must stay informed.
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