In light of “Vision 2030”, the Kingdom of Saudi Arabia started focusing on initiatives for the digitalisation of the economy

In light of “Vision 2030”, the Kingdom of Saudi Arabia started focusing on initiatives for the digitalisation of the economy – which resulted in a merge between The General Authority of Zakat and Tax (GAZT) & Zakat, Tax and Customs Authority (ZATCA) – introducing E-invoicing in Saudi Arabia. 

What is E-Invoicing? 

Electronic invoicing widely referred to as Fatoorah – is a procedure that aims to convert the issuing of paper invoices and notes into an electronic process that facilitates structured electronic exchange and processing of invoices, credit notes, and debit notes between buyers and sellers via an integrated electronic solution.

Types of E-invoices in Saudi Arabia

• Standard tax invoice: which is issued by  Business-to-Business (B2B), containing all the elements of a tax invoice, particularly the VAT registration number of the buyer & seller.
• Simplified tax invoice: which is issued by Business-to-Consumer (B2C) containing the main elements of a simplified tax invoice.

E-invoicing phases in Saudi Arabia

Phase 1: Generation Phase 

This phase was implemented on 4th December 2021 –  the taxpayers had to generate & store tax invoices, simplified tax invoices & respective CDNs. 

Phase 2: Integration Phase 

This phase has begun on 1st January 2023 & accordingly ZATCA notified the below waves below to date: