Mandatory e-Invoicing in the Kingdom of Saudi Arabia

KSA became part of the e‑Invoicing Revolution

- What does it mean, exactly?

The General Authority of Zakat and Tax (GAZT) has published new document exchange regulations, including both technical specifications and procedural rules concerning the implementation of mandatory e-invoicing across the Kingdom of Saudi Arabia. 

In the light of these regulations, e-invoicing became mandatory in December 4, 2021, for Saudi Arabian taxable persons and third parties issuing tax invoices on behalf of a taxpayer that is subject to VAT (Phase One).

Phase Two focusing on, among other processes, the integration with ZATCA systems, will start on January 1, 2023.

Implementation timeline graphic

Prerequisites for document exchange platforms:

  • Full compliance with the security requirements
  • Enabled integration with external systems via API
  • Tamper detection
  • Internet connection
Prerequisites for document exchange platforms


So, what makes Comarch e-Invoicing the go-to solution?

  • Comarch e-Invoicing is a powerful, easy-to-use platform that allows you to streamline and automate all of your AP/AR invoicing processes - no matter the size or technical maturity of your business. 

  • Created to address the challenges of the ongoing digital transformation, our solution is fully compliant with the latest data exchange regulations and modern data transfer standards.

  • Thanks to its many groundbreaking functionalities such as Self-Billing, e-Archive, Electronic Signature, Data Validation, Format Conversion, and Multichannel Distribution, it allows you to manage data in a way that is both highly effective and in line with your needs.

 

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What are the benefits?

  • Fast & secure data exchange
  • Reduced number of incorrect/incomplete documents
  • Low operational costs
  • On-time payments
  • Positive impact on the environment (CSR)
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Go Green – Go Paperless

As a global provider of innovative IT products and services, Comarch is committed to fostering corporate social responsibility.

Our company helps reduce the impact of climate change by developing IT solutions - such as Comarch e-Invoicing - that can both improve your business performance and contribute to environmental sustainability.

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We are wherever YOU are

Comarch continues to grow in the key sectors of the economy, including retail, finance, telecommunications, banking and insurance, public administration, and healthcare.

The company has recently expanded its global footprint by entering the GCC region, providing our products and services in countries such as the Kingdom of Saudi Arabia, the United Arab Emirates, Qatar, Oman, Bahrain, and Kuwait.

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Join the companies that have already improved their data efficiency with Comarch e-Invoicing!


Comarch has many years of experience in providing innovative IT products and services allowing for efficient document management and automation of various supply chain processes.

Check out some of our success stories to learn what our clients have achieved by using Comarch EDI, MDM, e-Invoicing (also in a Cloud), and Online Distribution.

Characteristics of the e-invoicing in Saudi Arabia

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

E-invoice format and platform

For the generation phase (December 4th 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.

Frequently Asked Questions

The e-Invoicing Revolution Has Begun

See how the new regulations can affect your company's operations

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