E-invoicing POS represents the future of invoicing. As a business, it is essential to evolve with the market trends. The benefits of having online accounting 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.
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 will begin on December 4, 2021.
The second phase will begin on January 1, 2023.
According to this law, businesses in KSA must create electronic invoices 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.
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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-invoicing solution 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 online 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 solution 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 solution 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 is being implemented in Saudi Arabia.
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-invoices 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 online accounting software providers like Posbytz permit.
Posbytz helps you seamlessly manage all your incoming and outgoing invoices and also helps you meet the current technical specifications for Saudi e-invoicing POS.
The main benefit Posbytz provides is the ability to keep track of your invoices and generate powerful insights. The added advantage of having ZAKAT approved POS makes your business operations simpler.
PosBytz is your comprehensive platform to manage everything you need to sell and grow your business.
PosBytz is a product of Bytize, Inc.