Saudi Arabia: Suggested amendments to the VAT Implementing Regulations
04 October, 2021
In brief
In order to harmonise the provisions and requirements related to the application of the e-invoicing regulation, the Zakat, Tax and Customs Authority (ZATCA) proposed amendments to the VAT Implementing Regulations.
The draft amendments (available only in Arabic) were published on the Public Consultation Platform of the the National Competitiveness Center on 27 September 2021 - for public consultation.
Interested parties, stakeholders, and taxpayers are highly encouraged to express their opinions - on this platform - and share feedback on the draft amendments no later than 23 October 2021.
In detail
ZATCA proposed amendments to the VAT Implementing Regulations aimed to harmonize the provisions and requirements related to the application of the e-invoicing Regulation.
The major amendments are summarised as follows:
Proposed amendments to Article 53 - Tax Invoices:
Further clarification on the self-billing arrangements
Content of a summary tax invoice
Instances and rules related to the issuance of a simplified tax invoice
Granting the power to ZATCA Governor to suspend or cancel the application of e-invoicing regulations to a category of specific taxpayers
Proposed amendments to Article 54 - Credit and Debit Notes:
Instances of issuance of Debit and Credit Notes (additional to what has been mentioned in Article 40 of the VAT Implementing Regulations)
Content and reference to Debit and Credit Notes
Proposed amendments to Article 66 - Records:
Including a non-obstante clause related to the retention of document requirements in KSA
Easing record retention for ‘fixed establishments’
Further stress on Arabic text to be captured for data retention purposes
Mandatory local storage of original documents
Further stress on data entry documentation, tamper proofing of systems, etc.
Introduction of an automatic tool for ZATCA to review the ERP systems being used by taxpayers
Addition of a new clause related to the storing of e-invoices and e-notes as stipulated by e-invoicing regulations
As part of the transitional journey towards e-invoicing implementation in KSA, ZATCA has proposed changes to tax invoices, debit / credit notes and record keeping articles to the VAT Implementing Regulations for public consultation purposes.
The Takeaway
Taxable persons are recommended to review the suggested changes and provide their comments/ feedback to ZATCA on the draft amendments no later than 23 October 2021.
In addition, to the extent it has not been done already, businesses should immediately start assessing the impact of the e-invoicing regulations on their systems and processes and plan the journey towards a successful implementation of e-invoicing (phase 1 - generation) by the set date of 4 December 2021.
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Chadi Abou Chakra
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