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. 

Obligation

Obligation

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). 

Archiving

Archiving

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

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. 

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. 

Tax Authority

Tax Authority

Zakat Tax and Customs Authority (ZATCA).

Digital Signature

Digital Signature

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

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

Contact one of our e-invoicing specialists.

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