The details are yet to be published, however, the initial E-invoicing Regulation has recently been enacted and was published on 4 December 2020. The new framework is set to go live on 4 December 2021, and will apply to all resident taxable persons, as well as any third party who issues a tax invoice on behalf of a taxable person residing in the Kingdom.
According to the Regulation, an e-invoice is an invoice that is issued, saved, and amended in electronic form. Credit and debit notes resulting from adjustments to e-invoices must also be issued electronically. A paper invoice that is converted into an electronic format through copying, scanning, or any other method is not considered as an electronic invoice, nor is unstructured invoice data.
Cross-border transactions are also within the scope of e-invoicing reform. Taxable persons in scope must issue e-invoices for all taxable supplies, regardless of if they are in the basic or zero rate and if issued to a resident or non-resident customer in the Kingdom.
The regulation stipulates minimum requirements for any electronic device, system or application used to issue e-invoices, debit, and credit notes. According to these requirements, the systems used must meet several conditions such as:
The ability to connect to the internet
Complying with the requirements and controls of data, information, or cybersecurity in the Kingdom
Be tamper-proof and include an anti-tampering mechanism
Be interchangeable with external systems using API
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