E-Invoice Generation refers to the process of creating electronic invoices for business transactions in a standardized digital format. In Saudi Arabia, this is part of the e-invoicing regulations set by the Zakat, Tax, and Customs Authority (ZATCA). Here's an overview of how to generate e-invoices in compliance with Saudi regulations:

1. Invoice Format

• XML or PDF/A-3 Format: E-invoices must be generated in either XML or PDF/A-3 format to ensure they can be processed and transmitted digitally. XML is used for automated data processing, while PDF/A-3 is used for human-readable documents.
• QR Code: The e-invoice must include a QR code that links to the invoice's details stored in ZATCA’s platform.

2. Mandatory Information on E-Invoices

• Seller and Buyer VAT Registration Numbers: Both the seller’s and buyer’s VAT registration numbers must be included.
• Invoice Number and Date: Every invoice must have a unique number and the date it was issued.
• Total Amount and VAT Amount: Clearly indicate the total amount, the VAT amount, and the applicable VAT rate.
• Description of Goods/Services: A brief description of the goods or services provided.

3. E-Invoice Generation Process

• System Integration: Businesses must integrate their invoicing systems with ZATCA’s platform, allowing for automatic data transmission.
• Generate E-Invoice: Using accounting or invoicing software, businesses generate invoices in the required format, incorporating the necessary information.
• Send Data to ZATCA: The system should send the generated invoice data in real-time to ZATCA’s platform, ensuring compliance.

4. E-Invoicing Software

• Businesses must use invoicing software or systems that are compatible with ZATCA’s platform for seamless e-invoice generation and real-time data sharing.

5. Compliance with ZATCA Guidelines

• The software and e-invoices must comply with ZATCA’s technical specifications, security measures, and data protection standards.

6. Retention of E-Invoices

• Businesses must securely store e-invoices for a minimum of 5 years as per ZATCA’s record-keeping requirements.

7. Penalties for Non-Compliance

• Businesses failing to generate e-invoices as required may face penalties, including fines.