Updated on: Apr 17th, 2023
4 min read
Zakat, Tax and Customs Authority (ZATCA) of the Kingdom of Saudi Arabia (KSA) implemented phase 1 of e-invoicing w.e.f 4th December 2021. Also, ZATCA intends to implement phase 2 of e-invoicing in waves. Accordingly, it notified that the taxpayers whose turnover was more than SAR 3 billion in 2021 shall implement phase 2 of e-invoicing from 1st January 2023.
In the e-invoicing initiative, the authority included all resident taxpayers, customers and third parties issuing tax invoices on behalf of the resident taxable persons. However, the authority excluded non-residents for VAT purposes from the e-invoicing initiative.
This article explains the changes to be made by taxpayers in their business process to comply with the ZATCA e-invoicing phase 2 requirements.
The taxpayers ideally would have to make minimum changes to their existing business process to implement e-invoicing according to the phase 2 requirements. Let’s take a look at the changes that would be required to comply with e-Invoicing regulations: