The Kingdom of Saudi Arabia (KSA) government has planned to implement e-invoicing in two phases. Zakat, Tax and Customs Authority (ZATCA), earlier known as the General Authority of Zakat and Tax (GAZT), manages tax administration in KSA. ZATCA notified that e-invoicing applies to all resident taxpayers except non-residents for VAT purposes.
Accordingly, ZATCA implemented phase 1 of e-invoicing in Saudi Arabia on 4th December 2021. Also, it announced on 24th June 2022 that businesses with a turnover of more than SAR 3 billion in 2021 must implement phase 2 from 1st January 2023.
Taxpayers should register their devices with the Fatoora portal to implement phase 2 of Saudi Arabia (SA) e-invoicing.
Device registration is part of the e-Invoice Generating Solution (EGS) units onboarding on the Fatoora portal. The EGS can be either an ERP, Point of Sale (PoS) machine or Online cash register (OCR). Here are examples of ZATCA-compliant EGS units.
Below are the prerequisites for registering devices on the Fatoora portal:
Here’s the step-by-step process to do device registration under Saudi Arabia e-invoicing:
Step 1: You need to access the Fatoora portal.
Step 2: Now, you’ve to enter the number of OTP codes you want to generate based on the number of devices you want to onboard.
Step 3: Fatoora portal displays the OTP codes.
Step 4: You must input the OTP codes into devices or EGS units within one hour from the generation time. You can automate the OTP entry process.
Step 5: Once OTPs are entered, your devices or EGS units shall share the Certificate Signing Request (CSR). To obtain the CSR, you need to create a private key using an ECDSA 256 algorithm and get the privatekey.pem output file.
Step 6: Now, your devices will request the ZATCA e-Invoicing portal to obtain Cryptographic Stamp Identifier (CSID).
Step 7: Your devices or EGS units undergo the necessary compliance checks by sending sample invoice files to ZATCA.
Step 8: After successful verification, your device will be onboarded, and a PCSID will be shared with you, i.e., you’ve completed registering your devices or EGS units.
Please note that you need APIs to perform steps 5,6 & 7. ClearTax’s restful APIs will integrate into your ERP or POS with minimal changes. Thereby, you can automatically register hundreds of ERP/POS in a single click with ZATCA and receive a cryptographic stamp for each device.