Mandatory e-invoicing in Saudi Arabia – what does it mean?

Posted on September 30, 2024 · 2 min read

Mandatory e-invoicing in Saudi Arabia – what does it mean? - Featured Image | MEA Markets
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Manual invoicing is no longer approved in many countries. This also applies to the Kingdom of Saudi Arabia, where all in-country taxpayers are obliged to issue invoices in electronic format since December 2021. The implementation was about to take place in two phases, with Wave 2 starting on January 2023. What do you need to know as a business owner in KSA?

No more paper invoices

Saudi Arabian entrepreneurs should be prepared for a range of possibilities to meet the governmental requirements. The Zakat, Tax and Customers Authority, also known as ZATCA, categorically forbids to generate or store invoices in paper or PDF format. Therefore, there arouses the need of a technical solution that is compatible with ZATCA platform. However, the major regulating authority in Saudi Arabia have issued initial requirements of a supportive software. The solution should be:

  • accessible online,
  • must comply with security and cybersecurity requirements in the country,
  • must be accessible by external system through APIs,
  • must guarantee the authenticity of the information.

The regulations introduced back in 2021apply to all B2B transactions performed by all taxable residents in Saudi Arabia.

The benefits of e-invoicing

There are unquestionable benefits of implementing mandatory e-invoicing in KSA. Entrepreneurs can now act faster and more efficiently thanks to multiple functionalities offered by software solution. E-Invoice Suite designed by Infinite is dedicated to medium and large companies that hire over 50 employees. The main advantages of the platform are:

  • secure data exchange – directly to the recipient, without third parties,
  • reduced risk of human error – no more misprints or other mistakes that require corrections,
  • low operational costs – documents issued electronically do not require printing, scanning or xeroxing,
  • faster processing – each invoice can be received within seconds,
  • improved cash management due to on-time payments,
  • ecological actions – reduced paper use and decreased carbon footprint .

E-invoice Suite implementation

An e-invoice platform offered by Infinite is a law-compliant solution that guarantees financial transparency to any large company. The implementation process takes from 2 to 6 weeks and covers full support of Infinite team members. In Phase 2 of ZATCA’s e-invoicing called FATOORAH all business owners are required to integrate their electronic solutions with governmental system in order to share data and necessary information electronically.

Thanks to Infinite’s e-Invoice Suite solution, you will be able to automate key business processes in your company, reduce costs significantly and make your employees work more productively. This is a hi-tech solution that also helps to improve financial management and – as a result – enhances supplier and customer relationships.

Ready to exchange electronic invoices instead of the ones in traditional paper format? Choose secure, legally binding transactions and streamline business processes with Infinite’s e-Invoice Suite.

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