- Phased Adoption of E-Invoicing: Saudi Arabia’s ZATCA has initiated the mandatory adoption of e-invoicing through the FATOORAH project, with the first phase starting on December 4, 2021, requiring businesses to generate compliant e-invoices. As of January 1, 2025, businesses with VAT-liable income exceeding 7 million Saudi Riyals will be mandated to connect to ZATCA.
- Integration and Compliance Requirements: The second phase, beginning January 1, 2023, mandates that businesses integrate their invoicing systems with ZATCA’s platform, generating e-invoices in XML format or PDF/A-3 and submitting them for real-time validation. All e-invoices must include mandatory fields, such as the VAT number and issuance date, and must be stored for seven years.
- B2B and B2C E-Invoicing Models: In the B2B model, e-invoices must be validated by ZATCA within 24 hours for legal validity, while in the B2C model, invoices must be submitted electronically without ZATCA validation but must include a QR code containing essential transaction details. Simplified Tax Invoices must provide specific seller and transaction information for B2C transactions.
Source Edicom
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
