How to Generate e-Invoices using Excel Ingestion in KSA?

The Kingdom of Saudi Arabia (KSA) has implemented mandatory e-invoicing in two phases starting from 2023. Under phase 2, Zakat, Tax and Customs Authority (ZATCA), the tax authority, announced nine waves covering businesses with more than SAR 30 million turnover.

Due to time constraints and huge integration efforts, businesses might not be ready by the deadline when the government announces a new wave. Hence, to tackle this issue and avoid non-compliance with e-invoicing, businesses can generate e-invoices through Excel ingestion. Further, small businesses can use this method to generate e-invoices, considering the fewer invoices and their financial limitations.

This article will explain how to use Excel ingestion for smooth e-invoicing in KSA.

What is e-invoicing in KSA?

e-Invoicing in KSA refers to the mandatory submission of invoice data to the ZATCA on the Fatoora portal. This system ensures transparency and efficiency in tax collection.  Businesses can integrate with ZATCA and generate e-invoices in various ways such as API, DB, SFTP and Excel.

What is Excel ingestion in KSA?

Excel ingestion is a method for submitting e-invoices on the Fatoorah portal using a standardised Excel template. This method is recommended for businesses with a lower volume of invoices or those yet to complete the ZATCA integration.

How to generate e-invoices using the Excel ingestion method in KSA?

Here’s the step-by-step process to generate e-invoices through Excel ingestion:

Step 1: Download the standardised Excel template

You can download the ClearTax Excel template, which complies with ZATCA e-invoicing regulations.

Step2: Fill in the required invoice details

You must fill in the required information such as seller details, buyer details, invoice amount, VAT amount, tax codes, etc.

Step 3: Upload and generate e-invoices

Now, log on to the ClearTax portal, upload the filled Excel sheet, validate the data and generate e-invoices.

Step 4: Print e-invoice with QR code

Once you successfully generate e-invoices, you can print the e-invoice along with the QR code.

Excel ingestion: Best-suited scenarios

Excel ingestion might not suit all businesses and scenarios. Here are a few best-suited scenarios where a business can generate e-invoices through Excel ingestion.

• Businesses that are using traditional ERPs which do not have any integration capabilities.
• Small businesses that don’t have a separate IT team
• Businesses which are in the process of ZATCA integration
• Businesses having a less number of invoices
• Businesses planning for faster e-invoicing implementation (on a temporary basis)

Benefits of e-invoicing through Excel ingestion

• Easy integration with Excel: Leverage seamless Excel integration to effortlessly upload and generate invoices, streamlining your business operations.
• Quick go-live: You can experience rapid integration and training within 24 hours, ensuring a seamless transition to efficient e-invoicing solutions.
• No ERP dependency: you can generate e-invoices in bulk seamlessly by importing data from custom Excel sheets.
• Simplified compliance: Excel ingestion offers a user-friendly way to comply with e-invoicing regulations, especially for businesses unfamiliar with complex accounting software.
• Cost-effective: Excel ingestion is a cost-effective solution for businesses with a lower invoice volume, avoiding investment in huge integrations.

How does ClearTax middleware help you with Excel ingestion?

Once you upload the Excel sheet, ClearTax middleware validates the data and makes necessary changes before submitting it to the Fatoora portal. This approach helps you avoid failed invoices and erroneous invoices. Further, ClearTax provides:

• Cloud solution for generation, storage & retrieval of e-invoices
• 150+ smart data validations
• e-Invoices generation as per ZATCA standard in English and Arabic
• Customised print templates and bulk emailing of invoices 
• Enterprise-grade security and user access management
• MIS, dashboards and priority helpdesk support 
• Cloud-hosted inside Saudi and six years of historical data storage & retrieval

e-Invoicing using Excel ingestion provides a convenient and efficient way for businesses to comply with e-invoicing regulations. However, it is to be noted that the method is specifically suitable for smaller businesses or those who are transitioning to e-invoicing.