Saudi Arabia

23

How to prepare your Business

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​RECAP OF PHASE 1 REQUIREMENTS

For December 4th​, 2021, taxpayers should:

  1. Stop issuing manual invoices: handwritten invoices and invoices written using text editing tools are not considered e-invoices

  2. Use a compliant electronic invoicing solution: e-invoicing solutions must comply with the requirements and specifications published under the e-invoicing laws and regulations and can be summarized for Phase 1 as follows:

  • Ability to generate e-invoices with the required elements including QR codes (Currently, there is a lack of proper QR code extension)

  • Ability to timestamp the e-invoice copies archived in the solution (Currently, Manager Uses Invoice Date, not Invoice Create timestamp and Date beside Time is required)

  • Absence of prohibited functionalities:

    1. Uncontrolled access (we have password login - talking about the cloud version - it also requires user session management “Auto-logout” You know what I mean here.)

    2. Software time change (I’m not sure about that)

    3. Tampering of e-invoices or logs. (There is a real problem here with the permissions even with the use of the closing date. For example, the user can create or modify operations through “create a, update batch” and logically it will not be possible to specify the permissions of all users for viewing only.)

    4. Multiple invoice sequences​ (You know, there are no restrictions on duplicating the invoice number in Manager)

  1. Ensure invoices include the required additional fields:

Tax Invoices:

The VAT registration number of the buyer if the buyer is a registered VAT taxpayer in addition to the invoice type Description as a title. QR code can be added (Optional)

Simplified Tax Invoices:

A mandatory QR code generated by the taxpayer’s E-Invoicing solution based on ZATCA’s specifications, in addition to the invoice type Description as a title. ​​

E-INVOICING READINESS STEPS

Businesses are recommended to follow the 4 steps below to ensure timely readiness for e-invoicing:

  1. Understand e-invoicing requirements: familiarize yourself with e-invoicing leveraging the materials available on this website

  2. Using a complaint solution based with the E-Invoicing requirements​ (We paid to use Manager and enjoyed it and hope to continue using it but currently, we have less than 15 days to decide whether to continue or not. It all depends on your capabilities to fulfill the requirements.)

Taxpayers can approach a solution provider or their internal technical teams to acquire or upgrade to a compliant solution.​

  1. Test your e-invoicing solution: test your e-invoicing solution before 4 December 2021 to ensure invoices are issued correctly
  2. Ensure your staff is ready: create awareness amongst your staff and ensure relevant staff is familiar with your e-invoicing solutions​​​.

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