Saudi Arabia: Updated Electronic Invoicing regulations issued by ZATCA

2 minute read
May 29, 2023

In brief

Zakat, Tax and Customs Authority (ZATCA) on 19 May 2023, Approved amendments/additions and updated document for controls, requirements, technical specifications and procedural rules necessary to implement the provisions of the E-Invoicing regulations in the Kingdom of Saudi Arabia (KSA).

The updated requirements for E-Invoicing implementation including controls, requirements, technical specifications and procedural rules can be access through this link.

In detail

Earlier during April 2023, ZATCA published the proposed amendments on the Public Consultation Platform of the National Competitiveness Center for public consultation. Post closure of the consultation period, the updated E-invoicing regulations have been issued by ZATCA. Below is the summary of the approved amendments introduced by ZATCA:

Charges, Allowances	Introduction of a new functionality for including the applicable ‘charges’ applied on the invoices/notes. The change allows taxpayers to capture such charges applied for the taxable transactions on the XML and human readable format.
Prepayment, Advance Payments	Addition of a new functionality to issue advance/prepayment invoices. The invoices issued against the respective advances or prepayments should be linked to the original invoices issued. XML level technical requirements are also highlighted in the document.

Furthermore, the alignment between E-invoicing regulations and related document are made, and ZATCA provided further clarity on the field level requirements.

In addition, the enhancements have been implemented across all FATOORA tools, including production, simulation, sandbox, SDK, and in web-based XML validator.

The takeaway

Taxpayers are recommended to assess the impact of the amendments introduced into the E-invoicing resolutions and the supporting documents issued by ZATCA in order to incorporate such changes in their respective systems to ensure compliance with the E-invoicing resolutions as per the effective date of integration with FATOORA portal as communicated by ZATCA.

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