The electronic bill system was launched in the Kingdom of Saudi Arabia in 2017 and is part of the government’s initiative to improve the business environment and develop the digital economy in the Kingdom.
This system aims to facilitate commercial operations and reduce administrative costs for companies.
It also works to improve transparency and develop the tax system in the Kingdom.
In the first phase of implementing the system, the use of the electronic invoice was optional for companies whose annual revenues exceed 1 million Saudi riyals, and this option has been available to companies since December 2018.
Since the beginning of January 2019, the use of electronic invoices has become mandatory for companies whose annual revenues exceed 40 million Saudi riyals.
The second stage of implementing the system includes all companies whose annual revenues exceed 1 million Saudi riyals and starts from the beginning of January 2021.
This stage includes obligating companies to issue electronic invoices and transfer them to customers through the electronic platform designated for that.
The electronic invoice system in the Kingdom of Saudi Arabia offers many advantages to companies, including facilitating financial management and control processes, improving communication between companies and customers, reducing administrative and environmental costs, and improving the quality of financial and tax data.
What is an electronic bill?
The electronic billing system is a procedure aimed at transforming the process of issuing paper invoices and notices into an electronic process that allows the exchange of invoices and debit and credit notes and processing them in an organized electronic format between the seller and the buyer in an integrated electronic format.
Electronic invoice specifications
Electronic Billing Data Dictionary This document contains names, definitions, and specifications for graphic elements
Electronic Invoice Implementation XML This document contains the numerical requirements for the construction and content of electronic invoices that the taxpayer must comply with.
Security requirements
Security Characteristics of Implementation This document contains the security requirements for electronic invoices that the taxpayer must comply with.
Electronic billing solutions providers
Taxpayers can obtain electronic billing services from any company that provides electronic systems, provided that the system used by the taxpayer complies with the billing requirements, as the Authority considers any taxpayer who complies with the requirements to be legal even if the service provider is not registered in the indicative list of electronic billing service providers.
In order to facilitate taxpayers’ access to electronic billing service providers, a list has been prepared of a group of electronic system providers who have passed the qualification requirements, with which taxpayers can communicate to obtain billing services.
Online Billing Solution ProvidersCurrently selected
Taxpayers can obtain electronic billing services from any company that provides electronic systems, provided that the system used by the taxpayer complies with the billing requirements, as the Authority considers any taxpayer who complies with the requirements to be legal even if the service provider is not registered in the indicative list of electronic billing service providers.
In order to facilitate taxpayers’ access to electronic billing service providers, a list has been prepared of a group of electronic system providers who have passed the qualification requirements, with whom taxpayers can communicate to obtain billing services.
Disclaimer: This list is indicative and non-binding on the taxpayers. It includes technical solution providers who have expressed their willingness to provide solutions that meet the requirements for issuing invoices and electronic notices.
This list is not considered approved by the Authority for the technical solutions provided by the solution providers included in the list. The Authority also bears no responsibility arising from the publication of this list, whether directly or indirectly
Procedures for applying the second stage of the electronic bill
The Zakat, Tax, and Customs Authority stated that it has started today the procedures for applying the second phase of electronic billing, “the linking and integration stage”, which aims to link and integrate the electronic billing systems of taxpayers subject to the electronic billing regulations with the authority’s system (invoice), as the authority will work to notify the targeted establishments to complete Procedures for implementing the second phase of electronic invoicing (the linking and integration phase).
The Authority revealed that the implementation of the linkage and integration phase will begin on January 1, 2023, with the establishments that were selected within the first group, after those establishments complete all the requirements necessary to complete this phase, confirming that the establishments covered by the same group were determined based on the criterion of the volume of revenues subject to value-added tax. For the year 2021 AD, for establishments whose revenues exceed (3) billion riyals.
The Zakat, Tax, and Customs Authority added that the second stage requires additional requirements over the first stage (the issuance and preservation stage), most notably linking the electronic billing systems of taxpayers with the Authority’s system, issuing electronic invoices based on a specific formula, and including a number of additional elements in the invoice.
It also indicated that the obligation in the second phase (connection and integration) will be done gradually and in groups, and the authority will inform the subsequent groups directly at least six months before the date specified for the linkage.
The Zakat, Tax, and Customs Authority indicated that the launch of the second phase of electronic invoicing comes as an extension of the economic renaissance and digital transformation taking place in the Kingdom, and as a continuation of a success story that began with the first phase of applying electronic invoicing, which achieved many positive results, the most prominent of which was raising the level of consumer protection in all sectors.
throughout the Kingdom, praising the great awareness that I sensed from the taxpayers and their quick response in implementing the first phase of the project.
It is noteworthy that the first phase of the electronic invoicing project (the issuance and preservation phase) began to be implemented on December 4, 2021 AD, which obliges taxpayers who are subject to the electronic invoicing regulations to completely stop using handwritten invoices or invoices written on computers through text editing programs or number analysis programs.
Ensure that there is a technical solution for electronic billing that complies with the Authority’s requirements, in addition to ensuring that electronic invoices are issued and saved with all elements, including the QR Code and other requirements.
The date of application of the second stage
The Saudi Zakat and Income Authority is the body responsible for implementing the electronic bill system in the Kingdom of Saudi Arabia, not the Egyptian Zakat Authority.
As for the date of implementation of the linking and integration phase in the second phase of the electronic invoice system in Saudi Arabia, it was implemented starting from January 2021, and this phase includes linking the electronic invoice system with the accounts and warehouse systems and the added tax system, and its integration with the digital services portal and the electronic unloading of shipments.
The requirements and conditions related to the application of the system are updated periodically by the responsible authority
Why choose Pioneers IT for electronic billing?
- A solution included in Dynamics 365 On-Premise / Cloud
- Real-time integration with ZATCA API for bill clearing
- Execution quickly
- Unlimited bills
- Automatic generation of QR codes
- Continue to use your existing ERP system