Saudi Arabia Update: E-INVOICING SYSTEM LAUNCHED

Saudi Arabia’s Zakat, Tax and Customs Authority, has announced an e-invoicing system will be launched. The FATOORAH system aims to promote fair competition, tackle the black market, and helping efforts to tackle anti-commercial concealment.

The system will be implemented in two phases; it will launch the first phase on 4 December this year and apply to taxpayers whom the E-Invoice Regulation covers. Tax invoices will have to be created and stored along with related debit and credit notices.

The second phase will be implemented gradually from January next year. Taxpayers regulated by the FATOORAH regulation will have to stop issuing handwritten invoices or invoices issued manually via text editing software. They will also have to be able to generate and store invoices electronically through a compliant e-invoicing system.

It can be a cash register machine, a cloud system, or enterprise resource planning software. The simplified tax invoices must include a QR code, and tax invoices must consist of the VAT number of the buyer if the buyer is a registered VAT taxpayer.

By Hammad & Al-Mehdar, Saudi Arabia, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact saudiarabia@transatlanticlaw.com

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