Characteristics of the electronic invoice in Saudi Arabia

Saudi Arabia is amid the implementation of the new electronic invoicing project called the FATOORAH. The Saudi Zakat, Tax and Customs Authority (ZATCA) has established two phases for the implementation of the electronic invoice. The new norm will affect resident taxpayers in the country and will apply to B2B, B2G and B2C transactions.

The EDICOM electronic invoicing solution is ready for phase II, the integration phase, with the ZATCA system.

Tax Authority

Tax Authority

Zakat Tax and Customs Authority (ZATCA).

Obligation

Obligation

As of January 1, 2023, the first wave companies that are obliged to connect to ZATCA are those based on the revenue subject to VAT for the year 2021 exceeding 3 billion SAR.
As of July 1, 2023, taxpayers that are obliged to connect to ZATCA are those with revenues subject to VAT surpassing SAR 500 million Saudi Rials.
As of October 1, 2023, taxpayers obliged to integrate their e-Invoicing systems with the FATOORAH platform are those with VATable income exceeding 250 million Saudi Rials.

Fiscal Control

Fiscal Control

Phase 1: No tax authority controls.
Phase 2: A Universally Unique Identifier (UUID) generated and signed by the ZATCA portal must be included. 

Print Format

Print Format

Phase 1: The B2C electronic invoices must include a QR code and is voluntary for B2B e-invoice. 
Phase 2: Printed B2B electronic invoices must include a QR code that final recipients will be able to use to verify the authenticity of invoices. 

Invoice Format

Invoice Format

Phase 1: Companies will be able to issue electronic invoices without a specific format. 
Phase 2: UBL- XML o PDF with embedded XML. 

Digital Signature

Digital Signature

Phase 1: Not mandatory.
Phase 2: Only Madatory for B2C e-invoices.

Archiving

Archiving

Invoices must be archived electronically with their associated data for 6 years. 

Do you need to know more about e-Invoicing in Saudi Arabia?

Contact one of our e-invoicing specialists.

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Saudi Arabia Makes Electronic Invoicing Mandatory: FATOORAH Project

The EDICOM e-Invoicing solution for the Kingdom of Saudi Arabia is ready for the integration phase with the ZATCA system