Date and Implementation Phases of e-invoicing (Fatoora) in Saudi

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Yarab A | Updated on: November 15, 2021

A game-changer into the world of invoicing to ensure a unified process for validating and auditing invoices is planned to be implemented in Saudi Arabia from 4th December,202. The e-invoice (Fatoora) system with a standardised protocol, powered by information technology, will enable data interoperability between the government’s system and taxpayers.

e-Invoicing (Fatoora) in Saudi Arabia How Phase-1 of e-Invoicing System Work

While e-invoicing is to start from 4th of December,2021, to allow businesses to get used to the new system of e-invoice, it will be implemented in two phases: Generation phase and the integration phase. The first phase begins on 4th December,2021.

Implementation phases of e-invoicing in Saudi

Generation Phase of e-invoicing

In the first phase, i.e., the generation phase of e-invoicing, businesses are required to generate and store compliant electronic tax invoices and notes using compliant e-invoicing systems

Integration Phase

In the second phase, the e-invoicing software or systems used by businesses will be integrated with ZATCA. The taxpayers will be notified by ZATCA at least 6 months before the date of integration.

Date of Implementation

The following are the implementation date of e-invoicing in Saudi Arabia

Phase-1 (Generation Phase)

4th December,2021

Phase -2 (Integration Phase)

1st January,2023

Requirements of generation phase of e-invoicing

In the generation phase of e-invoicing in Saudi, the businesses need to adhere to the following requirements mandatorily:

  • Add QR code on invoices as applicable:

    • Simplified invoice: Mandatory to add QR code on simplified invoices
    • Tax invoice: Optional to mention QR code on tax invoices

  • Use compliant e-invoicing solutions or software that comply with the requirements and specifications of e-invoicing laws and regulations

  • Should generate e-invoice with all mandatory invoice components as specified in VAT and e-invoice laws and regulations

  • Ability to archive the invoices in PDF or XML

  • Ability to timestamp the e-invoice copies archived in the solution

  • The e-invoice software solution used should prohibit the following functions

    • Uncontrolled access
    • Software time change
    • Tampering of e-invoices or logs
    • Multiple invoice sequences

Manual invoices under generation phase of e-invoicing

The e-invoicing guidelines clarify that a paper invoice converted into an electronic format through copying, scanning, or other methods is not an electronic invoice. This will put an end to the manual way of issuing invoices. It also includes handwritten invoices and invoices written using text editing tools.

Things You should not do from 4th December 2021

  • Generate manual or handwritten invoices

  • Generating invoices that do not meet the guidelines issued by the authority

  • Usage a software that does not comply with the e-invoicing requirements issued by the authority

  • Deleting e-invoices after issuing to customers

Read more on e-invoice Saudi

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