e-Invoicing Management System
Electronic invoicing will be rolled-out in two phases in KSA (more details about the phases here [link to the following page]). For the first phase, enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to today, with invoices issued through a compliant electronic solution and including additional fields depending on the type of the transaction.
PHASE 1 (as of December 4th, 2021)
Phase 1, known as the Generation phase, will require taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements.
Phase 1 is enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT..
PHASE 2 (starting from January 1st, 2023)
Phase 2, known as the Integration phase and rolled-out in waves by targeted taxpayer group, will involve the introduction of Phase 2 technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s systems.
ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance, and the enforcement date for the first target group will not be earlier than January 1st, 2023..
How it Works : Under an MSP programme, all requests, vendors, workers, timesheets and expenses are recorded, managed and tracked through a process and technology that offers an enterprise level view of all activity.
Once all workers and resources are recorded, the processes can be standardized, best practices introduced and policies enforced:
- Store multiple clients with banking information and branches.
- Create Tax Invoices in format specified by client and print or save the invoice in PDF or TIFF format.
- Generate Credit Notes and Partial Credit Notes associated with a tax invoice.
- Mark Invoices approved from Client to be processed for payments.