Stay compliant with ZATCA's requirements in KSA

What  is e-invoicing?

• e-invoicing, also known as electronic invoicing, refers to the process of generating, sending, and receiving invoices in a digital format. It eliminates the need for traditional paper-based invoices and streamlines the invoicing process through automated and paperless methods. By adopting e-invoicing, businesses can reduce manual data entry, improve accuracy, enhance efficiency, and achieve cost savings.

How does PwC e-invoicing solution integrate with your business systems?

• The PwC e-invoicing Solution offers two integration approaches tailored to your specific requirements. Firstly, it provides a comprehensive RESTful API (Application Programming Interface) that enables seamless integration between the solution and your existing business systems. This API facilitates real-time data transfer, synchronization, and communication between the e-invoicing solution and your source systems, ensuring smooth and efficient integration.
• Alternatively, the PwC e-invoicing Solution also supports a file-based approach, where you can generate and exchange invoices using specific file formats. This method allows for batch processing and can be utilized if real-time integration through the API is not required or feasible for your business.
  

How do we generate compliant E-invoices?

• The PwC e-invoicing Solution enables the generation of compliant E-invoices by providing the necessary features and formats to meet regulatory requirements. It allows for the creation of Simplified and Standard Tax Invoices, as well as associated Debit/Credit Notes, ensuring that all mandatory fields are included. Additionally, where required, the solution incorporates QR Codes into the invoices. The generated invoices are available in XML format, which ensures structured data for automated processing, as well as PDF/A-3 format for archiving purposes, guaranteeing long-term document integrity and preservation. With these capabilities, the PwC e-invoicing Solution ensures that your generated invoices align with the required compliance standards.

When will e-invoicing (FATOORAH) be implemented?

• Phase 1 of the e-invoicing mandate in Saudi Arabia, implemented by the Zakat, Tax, and Customs Authority (ZATCA), has been successfully launched. As of now, suppliers are no longer permitted to create or retain paper, picture format, or PDF invoices. This initial phase aims to transition businesses to digital invoicing practices.
• Phase 2, known as the integration phase, is scheduled to commence on 1 January 2023. The integration phase will be rolled out gradually in several waves, ensuring a smooth transition for taxpayers. During this phase, eligible participants will need to integrate their systems with the designated e-invoicing platform to comply with the mandated requirements.
  

Is e-invoicing (FATOORAH) mandatory for me?

• e-invoicing (FATOORAH) is mandatory for taxpayers based on specific criteria. The requirement applies to different waves of participants depending on their taxable revenue. Here are the thresholds and effective dates:
  • Wave 1: Taxable revenue exceeding SAR 3 billion, effective from 1 January 2023.
  • Wave 2: Taxable revenue of more than SAR 500 million, with a go-live date of 1 July 2023.
  • Wave 3: Taxable revenue exceeding SAR 250 million during calendar year 2021 or 2022, starting from 1 October 2023.
  • Wave 4: Taxable revenue exceeding SAR 150 million during calendar year 2021 or 2022.
  • Wave 5: Annual taxable revenue (taxable supplies) exceeding SAR 100 million during the calendar year 2021 or 2022.
  • Wave 6: Taxable revenue of more than SAR 70 million during the calendar year 2021 or 2022.
• If your taxable revenue falls within any of these thresholds, you are required to comply with e-invoicing (FATOORAH) regulations.