What is EInvoicing

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ZATCA : Zakat,TAX and Customs Authority of Saudi Arabia Introduced rule to implement Electronic invoicing in the Kingdom under ZATCA regulations. Electronic invoicing is the process of generating invoices through complient billing systems, thus hand written invoices are no longer valid in Kingdom.

ZATCA Announced the E-Invoicing will be implemented in two Phases,

Phase 1 : Generation Phase ( Generating E-Invoices & E-notes )

• Phase 1 of Einvoicing ( Generation Phase ) is in act from December 4 2021.

All taxpayers registered in Kingdom are informed to generate electronic invoices from a complient electronic billing system only. Invoices generated from billing system must follow ZATCA set standards rules. Electronically generated invoices must contain a QR Code with some ZATCA Standard invoice information in QR Code. There are certain type of Invoices, TAX Invoices (B2B / B2G) & Simplified TAX Invoices(B2C) and Enotes like Debite note & Creditnote. which must be generated by Einvoicing solution.

The Invoices are generated between Seller and Buyer , where both parties are registerd tax payers in Kingdom. TAX Invoice must display both Partes TIN Number , Name and Address details . QR Code generation is OPTIONAL in TAX Invoices

An invoice is considered as Simplified TAX Invoice when seller is registered TAX Payer and buyer is not registered in TAX . Simplifed TAX Invoices must display the ZATCA Compatible QR Code.

Einvoices generated from complient electronic billing systems contains a ZATCA compatible QR code. To achive ZATCA compatibility the QR Code generated must fullfill somes set standards by ZATCA , Like encryptions, QR Data structuring etc.INFOGATE Billing system generated QR Code is compatible with ZATCA Standards. ZATCA Introduced special Moble apps with features to scan generated QR Code and ensure ZATCA Compatibility.

Phase 2 : Integration Phase ( Integrating Einvoice system with ZATCA Portal )

• Phase e of Einvoicing ( Integration Phase ) will be in act from Jan 1 2023.

Phase 2, Integration phase aims to connect the Einvoicing solution with ZATCA Portal to achive automated billing data collection from tax payer in real time, thus to process and provide clearance of Einvoices with advanced Einvoice data process techniques. Each Einvoices generated from Einvoicing system will be auto transmitted to ZATCA Portal with well organised data structure set by ZATCA, thus process and clears the Einvoice within ZATCA Portal, Einvoices with ZATCA Clearance data will be transmitted back to Einvoice solution and incorporated to QR Code generated.