E invoicing Saudi Arabia represents the future of invoicing. As a business, it is essential to evolve with the market trends. The benefits of having e-invoicing software include simplifying the accounting process, validating the invoices with minimal risk, and eliminating the costs incurred. If you are a business in Saudi Arabia, you need to make a few preparations for the new changes that are coming in from ZATCA Tax Authority in Saudi Arabia
On May 28, 2021, Saudi Arabia’s General Authority combined with the Customs Authority to create the Zakat, Tax and Customs Authority(ZATCA). They had finalized the legislation of e-invoicing. This means that e-invoices are mandatory for B2B, B2C and B2G transactions and has two phases of implementation.
The first phase begin on December 4, 2021 and completed.
The second phase started on January 1, 2023. This phase is implemented in many phases based on the turnover of the business. Below is the schedule currently applicable for businesses based on the turnover.
This would be mandatory for all businesses irrespective of turnover from Mar 2024 as per latest mandate issued by ZATCA. To know more about ZATCA compliance and e invoicing Saudi Arabia.
According to this law, businesses in KSA must create e invoice KSA for domestic transactions. The e-invoices are generated for VAT purposes.
The exact expectations for the format, the content and the safety measures vary according to the two phases.
This phase aims to gradually shift the suppliers from handwritten invoices and storage of paper format. This gradual upgradation would help them be more ready for phase 2 and get the right e-invoicing solution.
The e invoice KSA should have the ability to generate QR codes based on the ZATCA’s specifications. The QR code ensures that consumers can scan the relevant invoice data using their smartphones. The QR code can be incorporated for B2B bills according to the issuer; however, for B2C simplified bills, it is mandatory. The mandatory fields for VAT that must be incorporated during the first phase include the VAT number of the buyer and the issuance date of the invoice.
The accounting software that your business utilises should fulfil security requirements like preventing uncontrolled access by users, intercepting data manipulation, and making it impossible to alter the counter for the sequence of transactions.
>>>The above Sample ZATCA Tax invoice which is generated through PosBytz <<<
During this phase, the e invoicing in Saudi Arabia of your choice must be integrated with ZATCA’s new central platform for e-invoicing. The taxpayer will be informed 6 months in advance regarding this implementation.
The e invoice KSA must also have strict tamper prevention measures, such as a digitized signature and a hash value as a universally unique identifier(UUID).
Since all the invoices must pass through the ZATCA’s e-invoicing platform, it requires API integration to connect the e-invoicing solution to the central platform.
There are two main reasons why e invoicing in Saudi Arabia is being implemented.
The first includes an increase in productivity and transactions. Businesses will notice that they will have quicker and seamless payments and incur lesser costs. The government also has greater visibility on the condition of the market. This means there will be unbiased competition and helps strengthen consumers’ protection in the market.
The second refers to the aspect of security e invoice KSA provides. E-invoices help the government view the movement of goods and services in real-time and prevent black market trade. There will also be an increase in tax compliance, and better decisions can be made thanks to the availability of data the software providers like Posbytz permit.
The main benefit Posbytz provides is the ability to keep track of your invoices and generate powerful insights. The added advantage of having ZATCA approved e invoice KSA makes your business operations simpler. PosBytz also offers a free e invoicing Saudi Arabia software to start for evaluation.
PosBytz offers E-invoicing software’s for below businesses in KSA.
– e invoicing Saudi Arabia software for Restaurants
– e invoicing in Saudi Arabia for Retail Stores
– e invoicing Saudi Arabia Trading business
– ZATCA Approved e-invoicing software for Grocery stores
–ZATCA Approved e-invoicing software for Meat stores
– e invoicing Saudi Arabia for Boutique stores
– e invoicing in Saudi Arabia for Cafe shops
– ZATCA Approved e invoice KSA for Food Trucks
ZATCA Approved e-invoicing in Saudi Arabia for Cloud kitchen software
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