New e-invoicing rules in Saudi Arabia

Saudi Arabia to introduce e-invoicing

New e-invoicing requirements take effect immediately

On 4 December 2020, Saudi Arabia General Authority of Zakat and Tax (GAZT) issued regulations on the introduction of e-invoicing. The regulation is applicable to all resident taxable persons including any third-party issuing tax invoices on behalf of the taxpayer.

Resident taxable persons and third-parties issuing tax invoices on behalf of the taxpayer in Saudi Arabia will have to issue and store e-invoices in electronic format with predefined data fields.

The regulation has stated that paper, PDF and scanned copies of invoices are not e-invoices. E-invoices are generated, stored and amended in a structured electronic format using an electronic solution. Debit and credit notes must also be issued in electronic format.

The regulation states that all provisions of VAT regulations, including provisions on penalties and fines, will be applied to e-invoicing.

The new regulations will be mandatory from 4th December 2021

The regulation also states that for any electronic solution, device or application used for the generation of e-invoices and e-notes, the below minimum requirements need to be met:

  • The ability to connect with the internet;
  • Compliance with all controls and requirements for information security, data and Cybersecurity in the Kingdom;
  • The ability to integrate with external systems using Application Programming Interface (API); and
  • A solution that is tamperproof

This regulation entered into force on 4 December 2020 and taxpayers have 12 months to implement the relevant technology and prepare for the issuance and storage of e-invoices.

On 4 December 2021, e-invoicing will be mandatory.

Non-resident taxable persons are not obligated to issue e-invoices.

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