Empowering Businesses with Seamless e-Invoicing in KSA
Drive efficiency and stay fully compliant with KSA e-Invoicing standards
E-Invoicing in the Kingdom of Saudi Arabia
The Kingdom of Saudi Arabia (KSA) implemented its e-invoicing mandate on December 4, 2021. The General Authority of Zakat, Tax, and Customs (ZATCA) defines e-invoices as “A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that is converted into an electronic format through copying, scanning, or any other method is not considered an electronic invoice.”
ZATCA rolled out e-invoicing in two phases: Phase 1 began on December 4, 2021, for all resident taxpayers and parties issuing invoices on behalf of VAT-registered suppliers. Phase 2 started on January 1, 2023, requiring integration with ZATCA’s Fatoorah portal and adherence to prescribed formats.
Key Objectives of the e-Invoicing Mandate
Eliminate error-prone manual invoice processing and reconciliation
Address the issues of tax evasion and fake invoices
Minimize the shadow economy
Ensure tax compliance and transparency
Scope of e-Invoicing
The e-invoicing regulations applied to two categories of entities/individuals:
All taxpayers subject to value-added tax residing in KSA; and
Any party that issues a tax invoice on behalf of a taxpayer who is subject to VAT.
Currently, taxpayers who are not residents of KSA are excluded from the e-invoicing requirement
What Does it Mean for Organizations
All business entities, including banks & financial institutions in the KSA, are now required to issue, receive, and store e-invoices. This represents a significant shift for most organizations, as they must maintain business continuity and deliver seamless customer experiences. Organizations must also keep up and comply with evolving e-invoicing rules as ZATCA continues to make amendments to the electronic invoicing (e-invoicing) Implementation Resolution.
It is important to understand that data elements required for e-invoicing are a subset of the data processed in the VAT system. To comply with the e-invoice regulations, banks or business entities must ensure that the accounting/billing system for VAT compliance, or the VAT engine, is integrated with the e-invoicing system.
SunTec e-Invoicing for Organizations
SunTec e-Invoicing can be integrated seamlessly with existing accounting systems or with our VAT engine within a matter of weeks without disturbing the existing IT landscape. Banks and organizations can electronically generate and exchange e-invoices to comply with ZATCA rules.
Our strong focus on the banking sector and rich experience of having deployed our VAT product for over 35 banks across the Middle East stand testimony to our sound market and domain understanding. It also positions us to help our customers to meet this mandate and comply smoothly with the Kingdom’s e-invoicing regulations.
The SunTec e-Invoicing Advantage
Seamless Integration with Taxpayer Systems
Standard interfaces make the product system agnostic
Multi-channel interfacing options: Feed, Database Staging (Push and Pull), and Online Processing via API
Comprehensive Compliance
Full integration with the ZATCA portal for E-invoice Generating Solution (EGS)
All data-level validations are performed upfront during invoice processing, preventing failures at ZATCA
Configurable criteria for generating both Standard and Simplified e-invoices and e-notes
Compliance with ZATCA specifications for technical components like UUID, Hash, Invoice Counter, and QR Code for Simplified Invoices
Pre-packaged ZATCA standard codes to ensure accuracy
Generation of both summary and transaction-level e-invoice and e-note XMLs
Multi-currency support for e-invoices and e-notes
Generation of compliant B2C e-invoices and e-notes, reported to ZATCA within 24 hours
Size threshold-based splitting of e-invoices
Generation of XML-embedded PDF/A-3 invoices and credit notes
Configurable rules for futureproofing the system
Minimized Human Error through Automation
Automated receipt of transactions from taxpayer systems, processing, e-invoice generation, and seamless integration with the ZATCA portal
Automated logging, monitoring, and reprocessing of e-invoicing technical errors
Automatic email alerts with process execution details sent to a pre-configured user group
Complete Digital Invoice Management
Configurable, business entity-specific template-based PDF/A-3 generation
PDF/A-3 invoices and credit notes available in Arabic, or Arabic + English, based on customer preference
Automatic emailing of PDF/A-3 invoices and credit notes to customers
API access for customers to download PDF invoices and credit notes via online channels
Regeneration of PDF/A-3 invoices and credit notes as needed
MIS Reports and Data Extracts
Standard MIS reports for e-invoice and e-note generation, failures, and exchanges
