Sunday, December 5, 2021
First phase of mandatory Electronic Invoicing "Fatoora" (e-Invoicing) comes into Force in Saudi Arabia
The first phase of electronic billing has come into effect in Saudi Arabia from 4th December, 2021, for all the companies registered in Value Added Tax (VAT). An e-billing is a tax invoice that is issued electronically by each taxpayer subject to to VAT. Trending : Booster dose is must from 1st February to keep Immune status, after 8 months of receiving 2nd dose
The e-invoicing application regulates buying and selling operations according to an integrated electronic process that protects the rights of consumers and improve their experience, with its active role in fighting the hidden economy.
- Electronic invoicing is about converting the issuance of invoices in all establishments, companies and businesses to an electronic invoice that limits the manipulation of manual invoices. Recommend : Penalty for violating institutional quarantine in Saudi Arabia
- To be noted, Saudi Arabia launched one of the important projects FATOORAH (e-invoicing) in August with two phases. FATOORAH project is expected to produce a major positive impact on the Saudi economy, which will contribute to bringing down hidden economy transactions and promote fair competition.
First Phase of Electronic Invoicing :
The first phase of e-invoicing in Saudi Arabia has come into force from 4th December, 2021. In this phase, the complete ending of using and issuing handwritten invoices, including written through computer programs, which are editable.
- This phase is known for issuance and saving the invoices with all simplified elements like, invoice with QR code, serial number that identifies and simplifies the tax, tax number of the buyer registered in VAT for tax invoices and invoice address depending on the issued type. Most Viewed : Direct entry to Saudi Arabia for those who received 1 dose in Saudi Arabia with 3 days quarantine
- The e-invoice must include supplier name, VAT registration number, Invoice date and time, Total Value Added Tax, Total for the invoice.
Second Phase of Electronic Invoicing :
The second phase to begin in January 2023, electronic billing is applied to all taxpayers subject to the VAT system, and the Zakat, Tax and Customs Authority announces all electronic billing requirements in the first stage. Download Saudi Expatriates Andorid app for latest updates
