- The e-invoicing system, launched in two phases, mandates businesses to transition from traditional paper invoices to fully digital ones. Phase 1, called the Generation Phase, required businesses to issue, store, and manage invoices electronically starting December 4, 2021. Phase 2, the Integration Phase, beginning in 2023, introduced more advanced features such as real-time integration with ZATCA's systems, QR codes, and electronic signatures.
- Phased Implementation:
- Phase 1 (Dec 2021): Invoices must be generated and stored electronically.
- Phase 2 (Jan 2023): Requires real-time integration with ZATCA for invoice validation.
- E-Invoice Requirements:
- Invoices must be in XML format, include a QR code, and be digitally signed.
- Must include VAT numbers, transaction details, and VAT amount.
- Integration with ZATCA: Invoices are validated in real-time by ZATCA to improve compliance and reduce tax evasion.
- Compliance: Businesses must comply to avoid penalties and ensure accurate VAT reporting.
- Benefits: Enhances efficiency, transparency, and cost savings by automating invoicing and reducing fraud.
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