E-invoicing in Saudi Arabia (KSA).

 What is E-Invoicing in KSA?

Electronic invoicing, popularly referred to as Fatoorah (the Arabic word for invoice), is the process of creating, sending, receiving, and processing invoices, credit notes, and debit notes electronically between buyers and sellers. Under this process, handwritten or scanned invoices, as well as pre-printed paper formats with handwritten text, are not allowed. Instead, e-invoicing ensures a structured electronic format for seamless transactions.

Remember, e-invoicing isn’t just about compliance; it’s a step toward a more efficient and sustainable business environment.

Types of Documents Covered by E-Invoicing

The following types of documents are not acceptable under e-invoicing:

• Invoices supplied by suppliers.
• Credit notes supplied by suppliers.
• Debit notes supplied by suppliers.
• Advance receipts
• Any other type of document as notified by the authorities.

E-invoicing offers several advantages:

• Transparency: Facilitates transparent commercial transactions.
• Data Standardization: Results in standardized data exchange.
• Efficiency: Speeds up communication, payments, and reduces costs.
• Accuracy: Helps achieve better accuracy in transactions.
• Tax Compliance: Enhances tax compliance for businesses.
• Environmental Impact: Reduces paper usage and promotes sustainability.

E-invoicing (FATOORAH) has been implemented in two phases:

Issuing and Storing of E-Invoices: Starting from December 4, 2021, taxpayers must do away with physical invoices, credit notes, and debit notes, and instead issue and store e-invoices and electronic notes.

Integration with Fatoora Portal: Taxpayers need to integrate their ERP/POS systems with ZATCA’s Fatoora portal based on specific waves and deadlines.