The first phase of the e-invoicing system begins on 4th December 2021, covering all the resident taxpayers. These taxpayers need to perform the generation, processing and storing of e-invoices and related Credit and Debit Notes (CDNs) by the e-invoicing regulations in the Kingdom of Saudi Arabia (KSA).
As per the recent guidelines by the Zakat, Tax and Customs Authority (ZATCA), there are certain mandatory technical requirements that the e-invoicing solution should be compliant with, which are:
The solution should have the ability to generate the tax invoice and the related CDN as per Article 53(5) of VAT Implementing Regulation. Also, it should be able to generate simplified tax invoices and related CDNs as per Article 53(8) of VAT Implementing Regulation.
There is no requirement to follow a specific format as long as the required data are present in the invoices and related CDNs.
The fields to be included within each electronic invoice type are represented by three levels of obligation. These obligations are:
Thus, the e-invoices and their related CDNs need to contain the fields mentioned above. Apart from these, it must be ensured that e-invoices and related CDNs are timestamped.
The e-invoicing solution should have the ability to export generated invoices and related CDNs into an external archival system to enable the taxpayers to comply with storage requirements. Such exported files should be with names which consist of:
QR code is a form of Matrix barcode. It has a pattern of black and white squares, which is machine-readable. QR code facilitates the basic validation of e-invoices and related CDNs. It needs to be present in the human-readable format in each invoice to enable their validation. Also, this is one of the mandatory fields in the case of simplified e-invoices. The printed QR code on the simplified e-invoice must contain:
The ZATCA may prescribe further technical requirements for the mandatory e-invoices and related CDNs. However, as of now, the e-invoices and e-invoicing solutions need to comply with the above requirements.
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