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Saudi Arabia sets phases for Mandatory E-Invoicing

Monday 11th April, 2022

Saudi Arabia has made the electronic invoice mandatory for tax payers in country since December 2021, the next phase is planned for January 2023.

The electronic invoicing project in Saudi Arabia is called the FATOORAH and is applicable to B2B, B2C and B2G transactions.

The implementation of the electronic invoicing system started on 4th December and the Zakat, Tax and Custom Authority (ZATCA) declared it will implement in two phases.

Phase 1 of e-invoicing project - started in December 2021:
Taxpayers are required to issue electronic invoices with a compatible system that allows the required fields to be represented in the electronic invoice. The system must also archive and generate an electronic copy to the client. Manual invoices will no longer be accepted

Phase 2 from 1st January, 2023:
After this date all invoicing systems must be compatible with the ZATCA system. The integration with the ZATCA’s system will be rolled out progressively based on the taxpayer class. ZATCA will inform taxpayers at least 6 months before their mandatory integration date.

During this phase the following requirements must be followed: all electronic invoices including tax invoices or simplified tax invoices and their associated documents must be generated in an XML or PDF/ A-3 (with XML) format. According to EDICOM.

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