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. Once issued, an e-invoice cannot be edited. However, you can issue electronic notes (debit and credit notes that are VAT compliant and issued through an electronic system). These should be issued with reference to the original invoice that was issued.
All of your invoicing and note issuing transactions will have to be done through the same e-invoicing system, and must be compliant with ZATCA’s regulations.

For the second phase, enforceable starting January​ 1st, 2023 in waves, the electronic solution must be integrated with ZATCA's systems and e-invoices should be generated in the required format.​