On 28 May 2021, the Zakat, Tax, and Customs Authority (ZATCA) known as the General Authority of Zakat and Tax (GAZT) has published the e-invoicing resolution in Saudi Arabia. The following means that suppliers will no longer be allowed to generate or store paper or PDF invoices. E-invoicing in KSA is a big step in moving along the transitional journey towards digital transformation in KSA
Introduction to E-invoicing
Electronic invoicing (e-Invoicing) is trading invoice documents between a supplier and a purchaser in an integrated electronic layout. E-Invoicing is an invoice that is issued, transmitted, received, processed and stored electronically using specific document formats. E-invoices are digital throughout the entire document life cycle, from issuance to archiving. It can help replace manual tasks with automated business rules and actions to increase efficiency, minimize error handling, and help businesses comply with e-invoicing legislation.
GAZT issuing E-invoicing Regulations
Approaching digital transformation in KSA, ZATCA has published the e-invoicing resolution and set out the controls, requirements, technical specifications, and procedures. The rules covered the generation and integration phases that include VAT invoices, debit, and credit notes. A detailed set of requirements and guidelines were also published.
GAZT generated these rules on 28 May 2021. The phase will be mandated from the beginning of December 2021, and the integration will be implemented in phases starting from January 1st, 2023.
Advantages of implementing e-invoicing in KSA
- GAZT compliant.
- Accounts Payable automatic software help companies reduce the time required to review and approve invoices so that employees can spend more time on higher-priority tasks.
- Electronic invoicing allows you to automate time-consuming, error-prone tasks such as data entry, matching, and approval. These steps will allow you to reassign staff to higher-value initiatives.
- Removing paperwork and manual tasks can increase work efficiency and cash flow.
- Encrypted file transfer, digital signatures, and secure networks make e-invoicing the safest way to send and receive invoices. The encrypted file transfers mean no risk of invoices being lost in the mail or sent to junk email.
- Track live delivery and processing status of records.
- Preparing E-invoices in KSA can be completed anywhere without the need for extra resources like printers, scanners, or the postal service.