Compliance with E-Invoicing Phase Two Requirements

[Esllam_Rashwan]

We appreciate your cooperation with ZATCA in fulfilling e-invoicing requirements and ensuring compliance. However, we have noticed that your invoices do not fully meet the requirements for Phase Two of e-invoicing, specifically regarding linkage and integration.

Key Observations:

• Commercial Registrations:
  When selecting the commercial registration in the supplier’s system, ensure that the correct branch’s commercial registration is entered when issuing VAT invoices. All branches issuing invoices must be properly registered, and the correct input for the “commercial registration” field must be verified.

Non-compliance with e-invoicing regulations may result in penalties under VAT law. We recommend making the necessary adjustments as soon as possible.

One of our clients, for whom we have integrated Manager with ZATCA, has received the email regarding e-invoicing compliance.

To clarify, this client has one main commercial registration under which two subsidiary registrations are listed, and they operate with two separate databases. Upon inquiring with ZATCA, they confirmed that the commercial registration number must be included on each invoice, explicitly specifying whether the invoice belongs to the main registration or one of the subsidiaries, even though all registrations fall under the same VAT number.

Our question is:

• What is the best approach to include the commercial registration number in each invoice?
• How should this be implemented efficiently within the invoicing system?

We appreciate your guidance on the best practice to ensure compliance.

[Ealfardan]

There is similar (not exactly, but similar enough) to an already existing idea regarding Inventory Locations.

Inventory Location in Purchase Quotes/Orders (Delivery Address)

It’s currently not possible to make a Purchase Order/Quote to a specific inventory location. I know that this piece of information will not affect the Inventory Quantities in Manager, but Delivery Address is a vital piece of information to be given to the Supplier so they can deliver to the correct location and provide accurate shipping rates especialy at the Purchase Quotes stage. Also, this would also automatically carry over to Goods Receipts when a Purchase Order gets delivered. Moreover,…

I think the idea needs extension to include Division and Inventory Location details on all transaction documents.

For now, you can do with a Multiple Selection Custom Field.

[Esllam_Rashwan]

Hello everyone,

We’ve received several complaints from Manager.io users in Saudi Arabia regarding non-compliance with Phase Two of the e-Invoicing regulations (Integration Phase) issued by ZATCA.

Some users with multiple Commercial Registrations (CRs) have added the CR numbers as custom fields in their invoices. However, they are still receiving non-compliance notifications from ZATCA, indicating that not all CRs are properly linked.

Has anyone else experienced this issue?
How did you handle it?

[Ealfardan]

@Esllam_Rashwan

Some users with multiple Commercial Registrations (CRs) have added the CR numbers as custom fields in their invoices. However, they are still receiving non-compliance notifications from ZATCA, indicating that not all CRs are properly linked.

Has anyone else experienced this issue?
How did you handle it?

Do you mean that they have multiple CRs and 1 single TIN?

[Esllam_Rashwan]

Yes, exactly
There is one TIN under which a main CR and several branch CRs are registered

[Esllam_Rashwan]

@Ealfardan @Mabaega
Your kind follow-up is appreciated

[Ealfardan]

The best approach to handle this would be to have separate addresses per Division

This is already in ideas:

Division Details?

I am wondering whether @lubos will eventually give us Division Details analogous to Busines Details. I have found the Business Details a very convenient place to store key information because I can add custom fields as desired. It is a wonderful feature. I would look for the ability to store such things as separate sales tax numbers, employer numbers, addresses, and other custom fields for each division. I am expressing what I seek. I assume we don’t already have Division Details. But if we d…

However, for the time being, I can only think of creating a footer for each CR which will change the business details

[Esllam_Rashwan]

@Ealfardan

However, for the time being, I can only think of creating a footer for each CR which will change the business details

Do you mean using custom fields, or do you think footers are a better option?

[Ealfardan]

You can definitely do with Custom fields, but it would be too tricky for me.

Imo, Footers are the better option here.