ZATCA has issued a mandate that all taxpayers must start using electronic means of invoicing from December 4th, 2021. E-invoicing is the only legal means for tax payment hereafter according to the guidelines released. This blog will explain e-invoicing in KSA and also understand how our ZATCA E-invoicing KSA logistics software helps the logistics business.
Read related article: Mandatory E-Invoicing in Saudi Arabia From 2021 Dec
What is an E-Invoice
An e-invoice is an Electronic Invoice transmitted between the supplier and customer electronically. The technology behind e-invoices is now one of the most recent revolutions in the business world. Electronic invoices are becoming more and more common. Businesses of all sizes can use electronic invoices for transparency and enhance the consumer experience.
Benefits of ZATCA E-Invoicing KSA
An e-invoice is an electronic version of a paper invoice. It is sent electronically to customers and customers can pay it via internet banking or credit card. It is the way of the future because of the multiple benefits that it brings. Some of them are,
- Reduce hidden costs
- Enhance customer satisfaction
- Maintain records
- Reduce human error
- Enriching the consumer protection
Read related article: ZATCA E-invoice Update in Logistics Software V5.4
Phase I and Phase II
How to be e-Invoicing ready? E-Invoice regulated by ZATCA has two phases,
Generation Phase begins on December 4, 2021, which requires the Taxpayers to amend and capture the E-Invoices. The E-Invoices should follow a common format(XML) which is regulated by ZATCA and not PDF/other formats.
Factors to be considered in Phase I
- Invoice must be associated with a QR Code. QR Codes make the recipient scan the invoices effectively.
- Strictly No to Manual Invoices. Handwritten or photocopy of Invoices is not considered to be valid under the new E-Invoicing system.
- Scanned Invoices will not be considered as valid E-Invoice.
- Do not use Text Editing Tools to make an E-Invoice. Invoices made with editing tools or word document is not considered to be Valid. Rather, one must use proper Invoicing Solutions made with correct guidelines.
- Mandatory Audit Log
- Storage and archival of E-Invoices.
Mandatory fields required on E-Invoice for generation phase
- Sellers Name
- VAT Registration Number of the seller
- Time Stamp of the E-Invoice / Credit / Debit Note
- VAT Total
- E-Invoice / Credit / Debit total with VAT
Apart from these options it also restrains the following,
- Uncontrolled Access to the Invoice
- Time should not be modified once the invoice is made.
- Tampering Invoice and Sequence Number (Invoice Sequence Number is different from Invoice Number)
Phase II is the Integration phase which will be implied on all the taxpayers from January 2023. Phase II suggests the TaxPayers fulfil the Technical requirements for the E-Invoice System.
This Phase demands a UUID (Universal Unique Identifier) apart from the Invoice Sequence number the E-Invoice has.
Benefits of E-Invoicing in Bridge LCS’ Logistics Software
Here are the benefits of the ZATCA e-invoicing update in our freight and logistics software. As per the guidelines of ZATCA, every taxpayer is supposed to adopt the E-Invoicing System from December 2021. To comply with the ZATCA E-invoicing system, which will start to take effect in 2021 and Being a customer-oriented Software, Bridge LCS has introduced the ZATCA e-invoice KSA feature so that customers can get complete control over their finances.
Our team has strived hard to design this customization after thorough research of different modules, customization techniques followed by detailed consultation with Finance and IT experts. The implementation team did an extraordinary job in this regard which allowed us to develop an experience that is sophisticated yet functional at the same time.
Being a registered service provider of ZATCA, Bridge LCS is now providing you with the Flexible Invoicing Solution. It offers,
- E-Invoicing with the QR Code attached to the invoices.
- Tamper Proof Solution as per the guideline.
- Improved Functionalities to make E-Invoicing Easier.
- Invoices available in Arabic & English with QR code.
Thank you for reading!
We hope you enjoyed reading about ZATKA e-invoicing in Saudi Arabia. We think this article helps the business in KSA. If you have any questions about ZATCA e-invoicing logistics software, please visit our website or contact us anytime.
We look forward to hearing your feedback.
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Great work guys. Thanks for updating
Thank you for your review, Archana.
great information..Thank you for the updates.
Thank you for your feedback, Ranjana. We are happy to hear that our new article has been helpful.