June 21, 2021

“Zakat and Tax”: 5 benefits of applying electronic billing


The Zakat, Tax and Customs Authority revealed 5 benefits of applying electronic invoicing “Fatoora”.

The authority explained that the benefits include reducing commercial concealment, fighting the hidden economy, enhancing the atmosphere of fair competition and protecting the consumer by providing a unified mechanism for documenting and auditing invoices, enriching the consumer experience, digitizing his relationship with the supplier, and increasing the rate of compliance with tax obligations.

This came through a tweet by the authority on its official Twitter account.

The Zakat, Tax and Customs Authority had recently published the decision on the controls, requirements, technical specifications and procedural rules necessary to implement the provisions of the electronic billing regulation. The electronic invoice, according to the regulation, is defined as a tax invoice that is issued electronically via an electronic means, and is issued by each taxpayer subject to value added tax in the Kingdom.

She explained that the application of electronic invoicing (invoice) will take place in two phases: the first phase: the “issuance phase,” which will enter into mandatory implementation starting from December 4, 2021 AD, and will require all taxpayers subject to the electronic billing regulation to issue and save invoices electronically via an electronic system compatible with the authority’s systems, The second phase is the “Integration and Connection Phase”, which will be implemented in a phased manner, starting from January 1, 2023. It will consolidate the integration between the electronic systems of the taxpayers and the Authority’s systems. It requires compliance with the technical and technical specifications of the second phase of electronic invoicing (invoice).

The authority will determine the stages of linking the electronic billing systems and notify the target groups in each stage at least six months before the date set for linking.

The authority called on all taxpayers from the business sector subject to the electronic billing regulation and service providers of sales systems, to review this decision and familiarize themselves with the requirements it contains. To ensure their readiness before the start of the implementation of the electronic billing project (Invoice), which is scheduled for the fourth of December of this year.

The authority also called on the business sector to review the easy guide to implement the requirements of electronic invoicing (invoice) through the following link (https://gazt.gov.sa/ar/RulesRegulations/Taxes/Pages/PhaseOne-requirements.aspx).

It is noteworthy that electronic invoicing (invoice) aims to support taxpayers from the business sector to fulfill their duties and raise the percentage of tax compliance, as well as its role in reducing the volume of hidden economy transactions, in addition to combating commercial cover-up. On the eighteenth of last March, the Zakat, Tax and Customs Authority published the draft controls, requirements, technical specifications and procedural rules necessary to implement the provisions of the electronic billing regulation, through the “Estisalah” platform of the National Competitiveness Center, in order to solicit the opinions of the public and those interested.

The authority had earlier announced the approval of its board of directors on the electronic billing regulation, which was published on December 4, 2020, knowing that the regulation has entered into force from the date of publication, and the date of the obligation to issue and keep electronic invoices is on December 4, 2021 AD.

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