e Invoicing Saudi Arabia | Fatoorah | ZATCA e Invoice Solution

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E-Invocing Roll-Out Schedule : FATOORAH Phased Approach in KSA

Phase 1: 04th December 2021- Generation phase

Phase 2: In following waves based upon the revenue of the Taxpayers - Integration phase


Waves Revenue Integration Period
Wave - 1 Taxpayers with annual taxable revenue above 3 Billion in 2021 01-Jan-2023 to 30-Jun-2023
Wave - 2 Taxpayers with annual taxable revenue above 0.5 Billion in 2021 01-Jul-2023 to 31-Dec-2023
Wave - 3 Taxpayers with annual taxable revenue above 250 Million in 2021 or 2022 01-Oct-2023 to 31-Jan-2024
Wave - 4 Taxpayers with annual taxable revenue above 150 Million in 2021 or 2022 01-Nov-2023 to 29-Feb-2024
Wave - 5 Taxpayers with annual taxable revenue above 100 Million in 2021 or 2022 01-Dec-2023 to 31-Mar-2024
Wave - 6 Taxpayers with annual taxable revenue above 70 Million in 2021 or 2022 01-Jan-2024 to 30-Apr-2024
Wave - 7 Taxpayers with annual taxable revenue above 50 Million in 2021 or 2022 01-Feb-2024 to 31-May-2024
Wave - 8 Taxpayers with annual taxable revenue above 40 Million in 2021 or 2022 01-Mar-2024 to 30-Jun-2024
Wave - 9 Taxpayers with annual taxable revenue above 30 Million in 2021 or 2022 01-Jun-2024 to 31-Sep-2024
Wave - 10 Taxpayers with annual taxable revenue above 25 Million in 2022 or 2023 01-Oct-2024 to 31-Dec-2024
Wave - 11 Taxpayers with annual taxable revenue above 15 Million in 2022 or 2023 01-Nov-2024 to 31-Jan-2025
Wave - 12 Taxpayers with annual taxable revenue above 10 Million in 2022 or 2023 01-Dec-2024 to 28-Feb-2025
Wave - 13 Taxpayers with annual taxable revenue above 7 Million in 2022 or 2023 01-Jan-2025 to 31-Mar-2025
Wave - 14 Taxpayers with annual taxable revenue above 5 Million in 2022 or 2023 01-Feb-2025 to 30-Apr-2025

Why Choose Taxilla for e-Invoicing in KSA?


Data Integration & Validation

  • Single or Multi-Source data input
  • Aggregate & Segregate data from each Department.
  • e-Invoice data validation
  • Convert/Flip Order data to invoices

Secure e-Invoice Transmission

  • Easy Onboarding of EGS unit
  • Schedule based submission of Simplified Tax Invoice
  • Realtime submission of Standard Tax Invoice
  • Immediate update to source system of success/failure notifications from ZATCA

Advanced Technology Support

  • QR Code generation
  • Hash Generation and Hash Sequencing
  • Cryptographic stamp
  • Sequence Invoice number generation
  • Archiving invoices

Robust and Reliable e-Invoice Solution for
Saudi Arabia

ZATCA/GAZT Compliant

  • Tamper-proof with Auto-Tamper-detection to ensure security and compliance.
  • Capability to generate, store, and archive invoices, credit notes & debit notes electronically for efficient record-keeping.
  • UUID with cryptographic stamp and Invoice Hash printed to secure and verify the authenticity of each document.

Automated Outcomes

  • Generate e-Invoice KSA XML or printable PDF/A3 with embedded XML, QR-Code, and VAT registration number for versatile document formats.
  • Custom Printable e-Invoice and e-Delivery of Invoice for convenient distribution and access.

Unified Platform

  • Offers integration management, transformation management, reconciliation management, and more for a comprehensive solution.
  • Features validation, computation rules management and collaborative data qualification process to ensure accuracy.

Advanced Analytics

  • Dynamic UI, optional data reporting format management, advanced dashboard, search, and more for an optimized user experience.

Collaborative Accounts Receivable Processing

  • E-Deliver documents to your B2B Network for efficient communication and workflow.
  • Automated reconciliation of Invoice data to maintain financial accuracy and transparency.
  • Inter & Intra Company collaborative document processing with configurable workflows to suit various business needs.

Our Partners


enScore - Online Dashboard

Features

Sales Dashboard

Purchase Dashboard

Analyzer Dashboard

Invoicing Dashboar

Advantages

Ellipse-1

Knows the sales performance of the business.

global-top

Knows the Inventory /procurement of the business.

global-large

Analyzes the Financial performances of the business with various Ratios.

enterprises

Knows Invoice status, VAT Payable Report.

Frequently Asked Questions
Blogs
News


What is ZATCA?
ZATCA is an acronym for Zakat, Tax and Customs Authority. It is the incharge of implementation and administration VAT.It is mandated to implement the E-Invoicing framework in Kingdom of Saudi Arabia (KSA) which was enforced through the E-Invoicing Regulations issued by the Board of Directors of the Authority on December 2020.
What are the benefits of e-invoicing?
Electronic Invoicing is a procedure that aims to convert the issuing of paper invoices as well as credit and debit notes into an electronic process that allows the exchange and processing of invoices, credit and debit notes in a structured electronic format between the buyer
How is e-invoicing implemented in KSA?
E-Invoicing in KSA is implemented in two phases:

Phase 1: It is also called as generation phase where persons subject to E-Invoicing regulations must generate electronic invoices and associated electronic notes as per ZATCA provided guidelines. This is mandatory from 4th of December 2022.Phase 2: It is also called as Integration phase where persons subject to E-Invoicing regulations must integrate their e-Invoice solution with ZATCA system as per the guidelines provided by ZATCA. This phase will be implemented from 1st of January 2023 in waves and ZATCA will notify the eligible persons atleast six months before the date set for integration"
What is electronic invoicing?
It is a tax invoice generated in strcutured electronic format (XML) through electronic means
What is electronic note?
Debit or Credit note generated in structured electronic format (XML) through electonic means
What is Electronic Tax Invoice?
This invoice is issued for most B2B and B2G transactions and will be used by the buyers to claim input VAT deductions. In phase 2 of e-Invoicing electronic tax invoice can be issued to buyers after being cryptographically stamped and cleared by ZATCA
How many types of e-Invoices are there?
Two types of e-Invoices:
1. Electronic Tax Invoice (Standard Invoice)
2. Simplified Electronic invoice"
What is Electronic Tax Invoice?
This invoice is issued for most B2B and B2G transactions and will be used by the buyers to claim input VAT deductions. In phase 2 of e-Invoicing electronic tax invoice can be issued to buyers after being cryptographically stamped and cleared by ZATCA
What is Simpliefied Electronic Invoice?
This invoice is issued for most B2C transactions and issued to buyer/customer at the point of sale. In phase 2, simplified e-Invoices must be reported to ZATCA within 24 hours of issuance of e-Invoice
What is E-Invoice generation solution?
E-Invoice generation solution is the software system assigned to a specific location of tax payer to generate a continuous chain of linked e-Invoices and it associated notes in XML format. It also connect to ZATCA using API to submit e-Invoices for reporting/clearance
What is UUID?
UUID is acronym for Universal Unique Identifier. It is a 128 bit number generated by chosen algorithm to make it unlikely that same identifier will not be generated by anyone with same algorithm. As per ZATCA guidelines this should be stored in XML invoice though it is not required to display on the invoice pdf
What is ICV?
ICV is an acronym for Invoice Counter Value. It is a unique numeric value assigned to the invoice by EGS and will be incremented for each invoice generated. EGS should not provide an option to reset this counter value.
Who are eligible for phase-2 of eInvoice?
Phase-2 of eInvoice in KSA will be implemented in waves and the eligible tax payers will be communicated 6 months before the enforcement date. Enforcement date for first wave taxpayers is January 1, 2023 and ZATCA has started sending notification to eligible tax payers of wave 1. Taxpayers in the first wave were selected based on the revenue subject to VAT for the year of 2021 exceeding (3 billion) SAR.
What are prohinited functions?
Prohibited functions are the actions e-Invoicing generation solution (EGS) must not allow. Below are the list of prohibited functions mandated by ZATCA for each phase. Prohibited functions for Phase 1: o Anonymous access o Ability to operate with default password o Absence of user session management o Allow alteration or deletion of generated e-invoices or their associated notes o Allows for log modification/deletion o Generated with inaccurate timestamps o Non-sequential log generation o Invoice counter reset Prohibited functions for Phase 2: o All Phase 1 prohibited functions o Ability to generate more than one invoice sequence at any given time o Option to export cryptographic stamping key o Allow software time changes o Modification of time stamp value while issuing invoice
What is invoice hash?
A hash is a digital fingerprint of a document obtained using a standardized hashing algorithm to prevent modifying or tampering with the original data. As per ZATCA guidelines SHA-256 algorithm must be used for has generation
What is CSR?
CSR is an Acronym for Certificate Signing Request which is generated by E-Invoicing Generation Solution (EGS) using taxpayer details, EGS details & Public Key. This CSR will be submitted to 'Compliance CSID API' along with the OTP generated in Fatoora portal by the taxpyer.
What is CCSID?
CCSID is the Acronym for Compliance Cryptographic Stamp Identifier. CCSID will be issued by ZATCA to EGS & Taxpayer after successfully validating the CSR submitted to ZATCA
What is PCSID?
PCSID is the Acronym for Production Crytographic Stamp Identifier. PCSID will be issued by ZATCA to EGS & Taxpayer after sucessfully validating the CCSID submitted to ZATCA through 'Production (Onboarding) CSID API' and will be used to uniquely identify the EGS solution in pocession of Taxpayer. PCSID is also called as digital certificate. This must be used as Authentication certificate in 'Clearance API' & 'Reporting API' while submitting e-Invoice to ZATCA
What happens if PCSID is expired?
If PCSID is expired, then EGS & Taxpayer must get the new PCSID by using the 'Production (Renewal) CSID API' provided by ZATCA.
Can a B2C invoice be shared to customer before submitting e-Invoice data to ZATCA?
Yes, Taxpayers can share B2C e-Invoice to customer before submitting to ZATCA . However, the same e-Invoice must be reported to ZATCA within 24 hours of the transaction using 'Reporting API' provided by ZATCA. If the e-Invoice is successfully accepted by ZATCA then status will be sent as 'Reported'
Can a B2B invoice be shared to customer before submitting e-Invoice data to ZATCA?
No, Taxpayers cannot share B2B e-Invoice to customer before submitting to ZATCA. Taxpayer has to submit e-Inovoice to ZATCA through 'Clearance API'. If the invoice is successfully accepted by ZATCA then EGS will receive a status message as 'Cleared' , e-Invoice XML which is cryptographically stamped by ZATCA and with modified QR code which includes crytographic stamp of ZATCA. Taxpayer can submit B2B invoice to customer only after it is cleared by ZATCA.
Who is responsible for cryptographic stamping of e-Invoices?
For B2C (simplified) e-Invoices, EGS solution must do cryptographic stamping using the private key generated as part of Onboarading process. For B2B (Standard) e-Invoices, ZATCA will do cryptographic stamping
Can a taxpayer use multiple EGS to submit e-Invoices to ZATCA?
Yes, Taxpayers can resubmit the rejected invoice as new invoice and must include the previous invoice hash which is generated for the invoice which is submitted immediately before the resubmitted invoice and not that of the invoice generated before the original rejected document
When resubmitting an invoice should it be referring to original rejected document?
Resubmitting invoice is similar to submitting new invoice and it need not be linked to original rejected invoice.
For Simplified Tax Invoices, what should be done if the reporting fails after issuing the invoice
to the buyer?
In case of Simplified Tax Invoices, if the reporting fails, then the taxpayer must correct the error from to prevent it from happening on subsequent documents. The error in rejected document can be rectified and a new document can be submitted for Reporting. As the invoice would have already been issued to customer, there is no need to issue another invoice
What makes Taxilla's e-invoicing software ideal for businesses in Saudi Arabia?
Taxilla's e-invoicing software is specifically designed to comply with ZATCA/GAZT regulations in Saudi Arabia, ensuring full legal compliance for local businesses.
How does your invoice billing software streamline B2B transactions?
It automates processes, reduces errors, and ensures faster payments, enhancing the efficiency of B2B transactions.
What makes Taxilla's e-invoicing software ideal for businesses in Saudi Arabia?
Taxilla's e-invoicing software is specifically designed to comply with ZATCA/GAZT regulations in Saudi Arabia, ensuring full legal compliance for local businesses.
Can Taxilla's e-invoice software integrate with existing systems in KSA businesses?
Yes, it integrates seamlessly, facilitating a smooth transition and efficient workflow.
What are the unique features of Taxilla's KSA e-invoicing solution for ZATCA compliance?
Features include real-time compliance checks, automated data capture, and secure data processing.
How does your software support ZATCA e-invoice regulations?
It ensures data integrity, security, and accurate tax calculations for ZATCA compliance.
Is Taxilla's e-invoice billing system compatible with global e-invoice standards?
Yes, it's designed to be compatible, ensuring a wide range of usability.
What advantages does Taxilla offer over other online invoicing software in the market?
Taxilla stands out for its advanced features to ensure compliance with ZATCA eInvoicing regulations with shorter implementation time.
How does the e-invoice QR reader feature work for businesses in KSA?
It simplifies invoice verification and processing by quickly scanning and decoding QR codes.
Can Taxilla's software handle GAZT e-invoice requirements efficiently?
Yes, it's equipped for automated compliance checks and accurate reporting.
How does Taxilla ensure its e-invoicing solutions stay updated with the latest ZATCA e-invoicing regulations?
Regular updates keep the software aligned with the latest regulations, ensuring ongoing compliance.

Please find below update on enInvoice-KSA for phase 2.

  • ZATCA has started communicating to target Tax payers to get ready with phase 2 requirements by 1st of January, 2023.
  • Tax payers with revenue (subject to VAT for the year 2021) of more than 3 billion SAR as of 2021 Please find above is the latest update published by ZATCA

Please find below update on enInvoice-KSA for phase 2. ZATCA has started communicating to target Tax payers to get ready with phase 2 requirements by 1st of January, 2023.Tax payers with revenue (subject to VAT for the year 2021) of more than 3 billion SAR as of 2021

Please find above is the latest update published by ZATCA

Why third-party SaaS application for e-Invoicing in KSA
Phase 1 of e-Invoice in KSA which is generation phase is already live in since December 1st, 2021. Zakat, Tax and Customs Authority (ZATCA) has mandated phase 2 which is integration phase from January 1st, 2023, in waves. Taxpayers under first wave are already notified by ZATCA to comply with phase 2 requirements.
E invoicing KSA Phase 2 | Complete Overview of Fatoorah Phase 2
The following post tells us everything about the new KSA E Invoicing regulations and its application to your business. Stay compliant with expert advice from Taxilla, an EGS

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