- Introduction of Fatoorah: Fatoorah is Saudi Arabia’s mandatory electronic invoicing system, part of the Vision 2030 initiative, aimed at modernizing the economy and enhancing transparency in financial transactions. It requires businesses to issue, store, and share invoices digitally in a standardized format, consisting of a Generation Phase and an Integration Phase.
- Key Features and Compliance: All VAT-registered businesses must comply with Fatoorah, which includes generating electronic invoices, adding digital signatures, and including QR codes for B2C transactions. The system ensures data security through encryption and is compatible with various accounting and ERP systems.
- E-Invoicing Process and Implementation: Businesses are required to create and archive electronic invoices, send real-time invoice data to the Zakat, Tax, and Customs Authority (ZATCA), and have already transitioned to electronic invoicing since December 2021, with full integration into ZATCA’s platform implemented by January 2023. This system aims to streamline operations and improve tax compliance for businesses in Saudi Arabia.
Source Fintedu
