The Zakat, Tax and Customs Authority (ZATCA) published its e-invoicing regulations on 4 December 2020, which was also effective from the date of publication. The regulations stipulated that e-invoicing would become mandatory for taxpayers by 4 December 2021.
As phase one draws to an end, phase two becomes enforceable from 1 January, 2023 in waves. Taxpayers must ensure they are prepared as follows:
1. Use a compliant invoicing solution with phase two requirements, which include:
- Ability to generate and store e-invoices in the required format (XML) or (PDF/A3 with embedded XML) with the required fields.
- Ensure the e-invoicing solution is compliant with the e-invoicing requirements including the ability to connect to the internet.
2. Integrate e-invoicing solution with ZATCA's Fatoora portal.
Contact Adel Daglas, Head of Tax to discuss phase two readiness and compliance.