In the new regulations rolled out for e-invoicing in the Kingdom of Saudi Arabia (KSA), the Zakat, Tax and Customs Authority (ZATCA) has issued guidelines to generate and issue electronic invoices. While many fields in the e-invoice require the transaction details to be filled, specific mandatory fields need an understanding to better comply with the rules and regulations.
UUID is mandatory for e-invoices and simplified e-invoices, indicating an internationally unique number that identifies an invoice and tracks it throughout its lifecycle.
A UUID appears like this – 061c95lv-d6bb942-e-aa6-24cb09ec1d001
The taxpayer’s compliant solution automatically generates UUID that should be seen on an electronic invoice XML. However, it cannot be located on a printed invoice.
ZATCA guidelines suggest that if any systematic error occurs after generating an e-invoice that is not in a compliant format, the e-invoice generated again or associated note must have the same UUID.
Cryptographic Stamp is submerged inside the QR code and is automatically generated from the complaint solutions. e-Invoicing Integration Portal generates Cryptographic Stamp that is a mandatory field of an e-invoice required by ZATCA.
On the other hand, the simplified e-invoices must include a Cryptographic Stamp automatically generated through the taxpayer’s invoice solution. Hence, the taxpayer must make sure their solutions are compliant and registered as required by ZATCA.
Cryptographic Stamp Identifier (CSID) is linked to the Cryptographic Stamp that helps connect the stamp with the registered invoice solution. It is issued and managed by the e-Invoicing Integration Portal.
You can request and manage such identifiers from the portal using your login credentials if you are subject to the e-invoicing regulations.
ZATCA required the previous invoice hash to be present in the subsequent electronic invoice or note document. Hence, all the compliant vendors will have to ensure that their solutions can generate the previous invoice hash in the next invoice.
An invoice hash is like a digital invoice fingerprint generated automatically within the invoice solution.
Previous Invoice Hash looks like this – NWZlY2ViNjZmZmM4NmYzOGQ5NTI3ODZjNmQ2OTZjNzljMmRiYzIzOWRkNGU5MWI0NjcyOWQ3M2EyN2ZiNTdlOQ==
The QR code embeds basic details of the invoice and is automatically generated from the invoice solutions on the printed and the electronic invoice.
It typically includes the seller’s name, VAT registration number, date and time, invoice and VAT amount, and Cryptographic Stamp, among other specific details. These details are embedded in the QR Code in the safest manner that cannot be tampered with. It is key to verify the invoice to ensure whether the invoice is a ZATCA requirements complaint.
It is a number that gets generated automatically from the invoice solutions. The number increases as new invoices are issued. The invoice counter can be the same for different invoice solutions owned by the same taxpayer.
It is in a numeric form that may look like this – 23881.
The fields mentioned above are specific fields that relate to different phases – integration or generation. These key mandatory fields are particular requirements by ZATCA apart from the other compulsory general fields of the e-invoice KSA.
Decimals place an important role while creating an invoice as most of the time, the price for a good or service will not be rounded off to a riyal. The ZATCA e-invoice XML implementation standard specifies the maximum decimals allowed.
The below table states the maximum number of decimals allowed:
|Field name||Maximum number of decimals allowed|
|Document level allowance amount||2|
|Document level allowance base amount||2|
|Sum of Invoice line net amount||2|
|Sum of allowances on document level||2|
|Invoice total amount without VAT||2|
|Invoice total VAT amount||2|
|Invoice total amount with VAT||2|
|Invoice total VAT amount in accounting currency||2|
|Amount due for payment||2|
|VAT category taxable amount||2|
|VAT category tax amount||2|
|Invoice line net amount||2|
|Invoice line allowance amount||2|
|Invoice line allowance base amount||2|
|Discount/ allowance percentage values||6|
|VAT amount at line level||2|
|Amount with VAT at line level||2|
|Item net price||2|
Also, all the decimals shall be rounded off using “half-up” rounding. Suppose the 3rd decimal is exactly 5 or higher, then round up to the 3rd decimal, else round down to the 2nd decimal.
Also, the taxpayer shall follow the below rules to reduce the risk of differences due to rounding:
|Cryptographic Stamp||Integration Phase|
|Cryptographic Stamp Identifier||Integration Phase|
|Previous Invoice Hash||Integration Phase|
Generation Phase – Simplified E-Invoices & Associated Notes
Integration Phase – Rest All Invoices
|Invoice Counter||Integration Phase|
Note: Phase 1 is called the generation phase, whereas phase 2 is called the integration phase.