The new norm will affect resident taxpayers in the country and will apply to B2B, B2G and B2C transactions. It will also affect third parties that issue invoices for taxpayers subject to VAT. The project consists of 2 implementation phases with different implementation characteristics: phase 1 generation (12/21) and phase 2 integration (01/2023).
e-Invoicing in Saudi Arabia
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 Custom Authority (ZATCA) has established two phases for the implementation of the electronic invoice, making the use of the electronic invoice mandatory as of December 2021.
Invoices must be archived electronically with their associated data for 6 years.
Phase 1: Companies will be able to issue electronic invoices without a specific format.
Phase 2: UBL- XML o PDF with embedded XML.
Phase 1: No tax authority controls.
Phase 2: A Universally Unique Identifier (UUID) generated and signed by the ZATCA portal must be included.
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.
Zakat Tax and Customs Authority (ZATCA).
Phase 1: Not mandatory.
Phase 2: Only Madatory for B2C e-invoices.