e-Invoicing is set to become mandatory in Saudi Arabia. The first phase of new obligations will come into effect on 4 December 2021. We have gathered the top-five important questions from our clients and related webinar participants about Saudi Arabia e-Invoicing implementation.
e-Invoicing in Saudi Arabia
Following a decision from the tax authorities (GAZT), e-Invoicing will become mandatory in Saudi Arabia. The implementation process is divided into two major phases. The first phase will come into effect on December 4. It includes the creation of electronic invoices and related documents, as well as provisions for their processing and record keeping. The second phase, the integration phase, will come into effect at the beginning of January 2023. This includes the most advanced features of the e-Invoicing concept, such as electronic invoice transmission and exchange via the online GAZT platform.
During the preparation and selection process of the mandate, we received these frequently asked questions from clients and webinar attendees regarding the new regulation of KSA electronic invoicing. Let’s cover them below.
- Is the QR CODE mandatory in Phase 1 for B2B and B2C?
QR code generation is mandatory only for B2C invoices in Phase 1.
- Is there a requirement to process inbound e-Invoices?
For now, there are no specific requirements to process inbound e-Invoices. Taxpayers are responsible for sending their outgoing invoices.
- How will SNI manage Arabic content? Is it going to come from the ERP or can SNI translate it?
As SNI, we cannot translate the data to Arabic. It should come directly from ERP records.
- We don’t use SAP as an ERP. Are there any other options?
Yes, we have a web-based portal solution for KSA e-Invoicing.
- For archiving, should we store our invoices in KSA?
Persons subject to the e-Invoicing Regulation can store their electronic invoices in an in-house server in KSA or in the cloud, in accordance with their solution requirements and storage requirements. As per the VAT Implementing Regulations, if data is hosted on the cloud it must be accessible through a direct link that can be made available to the authorities. The solution must allow persons subject to the e-Invoicing Regulation to export and save their invoices in an external archiving system.
To get more information about the process and our tailored solutions, please contact us at firstname.lastname@example.org.