Mandatory e-Invoicing in the Kingdom of Saudi Arabia

• B2B e-invoicing and simplified e-invoicing (usually used in B2C) has been mandatory since December 4^th 2021.
• The second phase (integration) starts as of January 1^st 2023.

E-invoice format and platform

For the generation phase (December 4^th 2021), there is no specific format required to generate and store the e-Invoices. Starting with the Integration phase, the invoice must be in XML format in order to be shared with the authority using the API for clearance and reporting.

ESAL is a national platform for e-invoicing exchange in Saudi Arabia.

E-invoicing process description

• The first phase of implementation requires companies to be able to generate tax invoices and simplified tax invoices in electronic, structured format, and to store compliant e-invoices electronically.
• Second, the integration phase focuses on the transmission of e-invoices. Once an e-invoice is cleared by the authority, suppliers can share the invoice or associated note with the customers.
• Simplified e-invoices may be shared directly with the customer while reporting of such invoices should happen within 24 hours of generation.

Integrity and authenticity

The supplier is responsible for the accuracy of the invoices issued, and for implementing security measures and adequate controls to prevent tampering with records stored electronically. It can be done by an electronic stamp which is created via cryptographic algorithms.

Archiving

Persons subject to the E-Invoicing Regulation may store their electronic invoices in a server on-premises in the KSA or in the cloud as per their solution requirements and storage requirements, and according to the provisions in VAT Law, VAT Implementing Regulation, E-Invoicing Regulation and resolutions and all other relevant Laws in KSA.

Acts/government sites

• E-Invoicing_Detailed__Guideline.pdf (zatca.gov.sa)
• E-Invoicing (zatca.gov.sa)