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  1. Focus Saudi Arabia
  2. E-Invoicing Software

What is e-invoicing?

E-invoicing is the process of generating digital invoices under the regulation of Zakat, Tax, and Customs Authority (ZATCA) in the Kingdom of Saudi Arabia (KSA), through which you could authenticate B2B, B2G, and B2C invoices electronically and use them wherever required over the common ZATCA portal.

The e-invoicing process comprises of two phases. In the first phase, the taxpayers have to issue and store e-invoices instead of physical invoices, credit, and debit notes. In the second phase, they are required to upload these invoices on ZATCA’s portal and get them validated before sharing them with the buyers.

e-invoicing solution

Who should opt for e-invoicing?

E-invoicing in KSA applies to all taxable goods and services subject to VAT (both standard and zero rates). Therefore, by default, all VAT registered businesses need to generate e-invoices and comply with the ZATCA regulations. Furthermore, companies that are not registered yet but are required to register must also adhere to the e-invoicing guidelines.

Apart from businesses, the following individuals fall under the scope of the e-invoicing regime:

  • Any taxable person who is a resident in KSA.
  • Any customer or any third-party who issues a tax invoice on behalf of the taxable person who is a resident in KSA according to the VAT regulations.
e-invoicing solution
e-invoicing solution

What are the benefits of e-invoicing?

E-invoicing would be a game-changer for your business for the following reasons:

  • E-invoices could be issued online quickly and are visible in real-time, empowering businesses with faster data exchange.
  • Rendering fraudulent bills is almost impossible as the authenticity is validated on the official platform.
  • Automation reduces human intervention, leading to fewer incorrect or incomplete documents.
  • Digital invoicing saves expenses on materials and human resources, which significantly lowers the operational costs.
  • On-time payments would increase as e-invoices could be sent to the customers immediately.
e-invoicing solution

Unsure how to get started and whom to rely on for e-invoicing?

The new system would require careful navigation that only reliable software from a trusted vendor could provide.

Focus Softnet was one of the earliest ERP and accounting software providers who have helped businesses navigate the complex terrain of the VAT regime when it was introduced in 2018. Our accounting and financial software has been widely used by enterprises and SMEs to simplify the entire VAT computation and filing process.

e-invoicing solution
e-invoicing solution

Still using SAP ERP without e-invoicing system?

Seamlessly integrate it with our standalone e-invoicing system to prevent duplication and manual processing errors. It would allow you to automate the invoicing process and take control over every invoice issued.

Our e-invoicing solution is cost effective and ready to integrate with your SAP ERP or other existing ERPs. With the SAP-ready e-invoicing system, you could define the formats you want to send or receive the invoices or alter them when necessary. This makes managing invoice formats for customers and suppliers much easier and hassle-free. You no more need to manually create invoices or worry about processing errors; e-invoicing integration would save time and increase the efficiency of the process.

6 reasons why you should opt for Focus Softnet’s e-invoicing system?

ZATCA e-Invoicing Compliant System

Our software is built in compliance with ZATCA’s e-invoicing guidelines, following all the prerequisites for the document exchange platform. Focus Softnet’s e-invoicing module is:

  • Equipped with modern security standards and mechanisms
  • Includes options to integrate with any external system via API
  • Capable of detecting invoice frauds and tampered documents
  • Able to generate invoices in Arabic and English with QR codes
  • Capable of making the users ready for phase 2 of e-invoicing with minimal steps

Minimal Manual Intervention

Our e-invoicing system is entirely automated and lets you decide when and how to act. You could take action at any of the following times or scenarios:

  • Act instantly, as soon as a new sales invoice is available
  • Act at a fixed time of the day that you could set and define
  • Check for new invoices multiple times at fixed timings throughout the day
  • Act only when you initiate the process (manual mode)

Track history and take control of your data

Our e-invoicing system lets you track all the invoices and take control of your business data. You could:

  • Track the history of all e-invoices generated in a specific time frame
  • Decide whether you want us to store or delete your data
  • Set recurring mode for frequent e-invoices to send them to customers automatically without manual efforts

Error-free e-invoicing with built-in validation tools

Our automated e-invoicing system prevents errors in your e-invoices and reduces the chances of rejections.

  • Built-in transaction approval tools help users verify e-invoices and edit them
  • Uploading correct invoices to the ZATCA Portal eliminates the chance of their rejection
  • You could also connect with our experienced support team if you need assistance

Takes care of your core accounting

In addition to making e-invoicing easy, our software solution also takes care of the financial accounting for your business. You could:

  • Record expenses and create vendor bills instantly
  • Calculate VAT liability, and prepare VAT returns and audit reports
  • Import bank statements and reconcile transactions without errors
  • Create financial reports in a few clicks and take control of your business finances better

Advanced Dashboard

Stay on top of all updates and business information with our advanced dashboard that is equipped with smart info panels.

  • Easy-to-understand visuals to make sense of complex data
  • Graphical representation of statistical information
e-invoicing solution

A go-to solution for e-invoicing and accounting needs.

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E-invoicing - FAQs

When would e-invoicing be implemented?

E-invoicing would be implemented in two phases:

  • Phase 1 (Generation Phase) - Applicable from December 4, 2021
  • Phase 2 (Integration Phase) - Applicable from January 1, 2024, and implemented in waves

The date of integration would be notified by ZATCA at least six months in advance.

Are there different kinds of e-invoices?

E-invoices are created in two formats:

  • Tax e-invoice (Standard e-invoice): It is issued for most B2B and B2G transactions and could be shared with buyers only after being cryptographically approved by ZATCA. It applies to both taxable supplies valued at SAR 1,000 or more and taxable supplies, excluding exports, less than SAR 1,000 (issued to a taxable person or non-taxable legal person).
  • Simplified e-invoices: It is designed for B2C transactions where the buyer does not need to use the invoices for input VAT deduction. It applies to taxable supplies, excluding exports (issued to a taxable person or non-taxable legal person).

All e-invoices have to be issued in Arabic. But you may opt to translate them or add other languages.

How does the e-invoicing process work in KSA?

The basic process of generating invoices through ERP systems is the same under the e-invoicing model. However, there would be a defined standard, schema, and format for e-invoicing to ensure uniformity so that machines and computer systems could easily read these documents. The taxpayer would be responsible for generating the invoice.

Here's what you have to do for each transaction:

  • Generate e-invoice via an e-invoice compliant software
  • Your e-invoice needs to contain all the fields required in a standard invoice, such as seller name, VAT number, date and time stamp, VAT amount, invoice amount details, and description of goods or services sold.
  • It must also include a Quick Response (QR) code that should display all the details mentioned above when scanned.
  • Push this invoice to ZATCA’s portal and get it validated before you sending to the buyer
  • Store the e-invoice in your system for future reference.

Choosing a cloud-based solution with e-invoicing features makes storage easier and ensures compliance automatically.

Is it mandatory to generate QR codes on invoices?

Yes, QR codes are mandatory for simplified tax invoices (issued for B2C transactions) and optional for tax invoices or standard e-invoices (issued for B2B transactions).

ZATCA does not provide QR codes. They need to be generated by the taxpayer using an e-invoicing software.