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The KSA E-Invoicing was introduced in the Kingdom of Saudi Arabia on December 4, 2021. The implementation of the system will be carried out in two main phases:
Phase I : the generation phase, has already been rolled out as of December 4, 2021. The General Authority for Zakat and Tax (ZATCA) has introduced the new regulations for resident taxpayers registered for Value Added Tax (VAT) purposes in Saudi Arabia. As a result, taxpayers are now required to issue invoices in an electronic invoice. The issuance of paper invoices is no longer acceptable under ZATCA requirements.
Phase II : the integration phase, mandatory from January 1, 2023. Taxpayers are now required to integrate their invoicing systems with the Fatoora Portal of the General Authority for Zakat and Tax (ZATCA) through a structured rollout process.
E-Invoicing in KSA is a system that enables businesses to electronically transmit invoices to the ZATCA. The Saudi Arabian General Authority of Zakat and Tax (GAZT) is the agency responsible for implementing and overseeing e-invoicing in the country.
Under the E-Invoicing system, all taxpayers must submit invoices to the GAZT through an approved E-Invoicing platform. The platform will then validate the invoice and generate a UUID, a digital signature, a sequential number (which differentiates each e-invoice) and a cryptographic stamp with QR code.
E-Invoicing in KSA is mandatory for businesses that exceed a certain threshold of annual sales and must be used for all invoices issued to the government. This includes invoices for the supply of goods and services to government agencies, as well as invoices for the payment of taxes and other fees.
Phase 2 of KSA E-Invoicing will be rolled out in several waves and ZATCA will notify the taxpayers at least six months in advance, and is rolled-out in waves by taxpayer group:
|Taxpayers with annual taxable revenue above 3 Billion SAR in 2021
|1 Jan – 30 Jun 2023
|Taxpayers with annual taxable revenue above 0.5 Billion SAR in 2021
|1 Jul – 31 Dec 2023