Saudi Arabia

Electronic invoicing is a procedure that aims to convert the issuing of paper invoices and notes into an electronic process that allows the exchange and processing of invoices, credit notes & debit notes in a structure electronic format between buyer and seller through an integrated electronic solution.

 What is an electronic invoice?

 A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that converted into an electronic format through coping, scanning, or any other method is not considered an electronic invoice. 

Roll-out phases

​​​E-INVOICING (FATOORAH) IMPLEMETATION IN KSA​ ​ZATCA has published e-invoicing requirements that will be rolled-out into two main phases in KSA:

 PHASE 1 (as of December 4th, 2021) 

Phase 1, known as the Generation phase, will require taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements. Phase 1 is enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT.

PHASE 2 ​ (enforceable starting January 1st, 2023 in waves) 

Phase 2, known as the Integration phase and rolled-out in waves by targeted taxpayer group, will involve the introduction of Phase 2 technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s systems. ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance, and is rolled-out in waves by taxpayer group.