Saudi Arabia to employ e-invoicing from December 2021

Thursday 10 December 2020 13:20 CET | News

Saudi Arabia has announced it will be introducing a new e-invoicing system that is expected to be a CTC regime.

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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Keywords: Saudi Arabia, regulations, e-invoicing, CTC, framework, taxes, cross-border payments, debit, credit
Categories: Banking & Fintech
Countries: Saudi Arabia
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