POS System: How to Generate e-Invoices Directly from POS in KSA?

Updated on: Dec 14th, 2023


6 min read

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A Point Of Sale (POS) system is used in retail stores to make sales. Zakat, Tax and Customs Authority (ZATCA), the tax authority in the Kingdom of Saudi Arabia (KSA), mandated businesses to generate e-invoices for all sales transactions.

Hence, businesses must integrate POS with ZATCA and the e-invoice generation process. This article explains all about POS and how to generate e-invoices directly from a POS system in KSA.

What is a Point of Sale (POS)?

A POS could be a physical device in a retail store or a checkout page in a website (online store).

The software used for POS devices is exponentially growing with all new features that allow businesses to monitor inventory levels and customer preferences. Further, they are helping in tracking pricing accuracy and collecting marketing data.

What are the features of POS?

The latest POSs are capable of managing business processes beyond sales, such as

  • Payment processing
  • Inventory management
  • Human resources management
  • Customer services
  • Analytics
  • Reporting

Benefits of POS Systems

Basic POS systems include an electronic cash register and software to coordinate data collected from daily purchases. Further, businesses can enhance the POS through more data-capture devices installation and creating a network. 

The advanced POS systems:

  • Efficiently enhance retail operations by automating transactions and tracking sales data. 
  • Track data and identify discrepancies in pricing or cash flow that could lead to profit or loss or interrupt sales.
  • Monitoring inventory and buying trends can help retailers avoid customer service issues.

POS and KSA e-Invoicing

Till now, ZATCA has announced eight waves under phase 2 of e-invoicing, covering businesses having more than SAR 40 million to generate e-invoices. Accordingly, e-invoicing applicable businesses must integrate their ERP/POS/accounting systems with the Fatoora portal

After integration, businesses operating at the retail level using POS devices at stores or checkout pages on websites must generate e-invoices. Even though businesses have a 24-hour window to report retail sales to ZATCA, it is suggested to report in real-time or hourly, considering the large volume of invoices.

The major concern in generating e-invoices from POS is internet connectivity, which can disrupt counter or website sales. This scenario eventually results in a loss of business and unhappy customers. Hence, it’s important to have a scalable e-invoicing solution.

How can Clear help you generate e-invoices directly from POS in Saudi Arabia?

ClearTax introduced an offline ZATCA Phase II e-Invoice application for POS. Below are the few features provided by us:

  • No Internet, No Problem: You can generate e-invoices on POS systems even when you don’t have an internet connection and an inbuilt e-invoicing solution.
  • Blazing Speed: Our on-premises design allows you to generate up to 12,000 e-invoices/min during peak load.
  • Broad Application: We support at any scale, so you can seamlessly generate a high volume of e-invoices at any frequency.
  • Broad Compatibility: We’re in sync with Oracle Retail POS, Legacy POS, Toshiba, Aloha, Saccao, Microsoft Dynamics AX, Routepro, Pizzagest, and even for a customised ERP/POS.

Businesses present across multiple locations must have set up many POS systems. With the introduction of e-invoicing, they must integrate all these POS systems with ZATCA to generate e-invoices. Any non-compliance can result in notices/penalties from ZATCA. Hence, businesses should opt for smart solutions that offer POS integration with minimal disruption and can handle any scale at any time.

Frequently Asked Questions

What is e-invoicing in KSA?

e-Invoicing, known as electronic invoicing, is notified as Fatoorah in KSA. ZATCA, the tax authority, aimed to replace paper invoices with electronic ones. Accordingly, it announced e-invoicing, in which invoices and related CDNs between buyer and seller would be exchanged in a structured electronic format.

Why do I need to generate e-invoices from my POS?

POS is one type of invoicing system. ZATCA has been notified under e-invoicing guidelines to integrate all invoicing systems with the Fatoora portal to generate e-invoices. Hence, it is mandatory to integrate and generate e-invoices from POS.

What are the technical requirements for e-invoicing in KSA?

e-Invoicing solution must be compliant with the below mandatory technical requirements:

  • Types of invoices and notes
  • Invoice and credit/debit note format
  • Invoice and credit/debit note structure
  • Data Processing & Security
  • Data Storage
  • QR code
Do I need to register my POS system with ZATCA?

If you fall under the e-invoicing threshold, you must register all accounting/ERP/POS used for invoicing.

How can I generate e-invoices from my POS system?

You must integrate with the Fatoora portal at stores or checkout pages on the website level to generate e-invoices.