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What is e-invoicing?

E-invoicing is the process of generating invoices in a digital format, so you can issue and store them electronically. The Zakat, Tax and Customs Authority (ZATCA) in the Kingdom of Saudi Arabia (KSA) has rolled out regulations mandating businesses to adopt an e-invoicing process in two phases, starting on December 4, 2021.
For KSA VAT taxpayers, e-invoices will resemble the VAT tax invoices that are generally issued, but will be generated through an online system. Do note that a paper invoice that is copied or scanned is not considered an e-invoice.
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ZATCA Approved E-Invoicing Solution

Our solution is Approved by ZATCA and fully compliant with the E-Invoicing Regulations issued by Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia.
Our E-Invoicing Solution has been built on a highly reliable structure which ensures maximum durability, accessibility and security as well as the agility to adapt to any changes and additional requirements by ZATCA. This means that we can provide a hassle free integration with ZATCA in 2023.

Why is e-invoicing being introduced?

These regulations are being rolled out so that businesses can work more efficiently and securely.

The ultimate goal of this move is to integrate your business data with the ZATCA system to make trade more seamless and transparent. The government can standardize the way invoices are reported to the system, with a common, machine-readable format, while also staying updated on the transactions that get pushed to their portal. Paper storage and hand-written invoices will be phased out and, since all invoices will be authenticated on the ZATCA portal, fraudulent activities such as fake invoices can be detected.

E-invoicing will also create a common database for audits. With this readily available information, tax authorities won’t need to conduct audits as frequently as before.

Other benefits of e-invoicing for taxpayers:

To comply with the rules, it’s essential that every resident taxpayer is prepared for einvoicing. Here’s what you need to know about how the KSA VAT einvoicing regulations will impact you, and what you need to do in the future.

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Why choose ZATCA invoicing?

A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that is converted into an electronic format through copying, scanning, or any other method is not considered an electronic invoice.
The technical requirements are typically implemented by solution providers (such as Ignite). Taxpayers may approach a Ignite team to acquire a compliant electronic system; and make sure they are generating compliant invoices starting from December 4th, 2021.​

E-invoices for Phase 1 (4 December 2021) are similar to current invoices, with minimum additional fields:
a. For simplified tax invoices and their associated notes (usually issued for B2C transactions) a mandatory QR code.
b.For tax invoices and their associated notes (usually issued for B2B transactions), an optional QR code and mandatory VAT number of the buyer if the buyer is a registered VAT taxpayer.
There is no specific file format mandated for Phase 1, however, invoices must include the mandatory fields and must be issued from an electronic system meeting ZATCA’s requirements. In addition, electronic copies of all issued invoices must be stored by the taxpayer.​​

Ignite complies with the ZATCA’s requirements to implement the first and second phases of the e-invoicing.
Yes, Ignite is a cloud-based commerce platform.
Yes, QR code could be generated from Ignite Apps. QR code is mandatory for simplified tax invoices (usually issued for B2C transactions) and optionally for tax invoices (usually issued for B2B transactions).

Yes, it includes the following:
– Seller’s name
– VAT registration number of the seller
– Time stamp of the Electronic Invoice or Credit/Debit Note (date and time)
– Electronic Invoice or Credit/Debit Note total (with VAT)
– VAT total​

E-Invoice Mandate

PHASE 1

December 04, 2021

Tax Payers are required to generate and store compliant electronic invoices and notes using compliant e-invoicing systems.
Manual and hand-written invoices will no longer be considered as tax compliant.
E-invoices generated can be in any acceptable format as long as they are compliant with the Regulations.
QR Code is mandatory for simplified invoice.

PHASE 2

January 01, 2023

Integration of taxpayer e-invoicing systems with ZATCA. The integration will take place in waves by ZATCA by targeted taxpayer groups.
Tax payers will be notified by ZATCA on the date of their integration at least 6 months in advance.
Mandatory UUID and Anti-tampering features such as cryptographic stamp and hash.
QR Code is mandatory for all invoices.