Saudi Arabia is imposing mandatory e-invoicing from 4 December 2021. Companies operating in Saudi Arabia will have to prepare XML invoices and clear them through the tax authority’s digital system.
To help businesses prepare for the new requirements, Saudi authorities have issued basic e-invoicing guidelines.
What is e-invoicing?
According to the guidelines, an electronic invoice is “issued, stored and amended in a structured electronic format through an electronic system, which includes all the requirements of a tax invoice.”
In other words, an e-invoice is not simply a digitised invoice. For instance, a scanned invoice is not an electronic invoice
In order to comply with Saudi Arabia’s e-invoicing rules, you thus need the software to to meet the e-invoice requirements.
Saudi Arabia’s technical requirements
Given the specific definition of an e-invoice, businesses require specified technology to comply with the e-invoicing mandate.
Most basically, businesses need a connection to the internet. According to the guidance, you also need the relevant security and data controls, as well as mechanism to detect and prevent tampering
Finally, companies need to be able to integrate with the tax authority’s API.
Secure VAT software that makes e-invoicing easy
Saudi Arabia is hardly alone in making e-invoicing mandatory. From France to Poland to India, global authorities are shifting to a digital VAT compliance paradigm to make VAT compliance more secure and efficient (and to make VAT evasion harder).
Vatglobal’s powerful VAT technology ensures every business can effectively meet even the most stringent VAT compliance obligations. Vatglobal’s proprietary digital solution automates VAT compliance, eliminating human error and meeting all the technical requirements of global VAT authorities. Get in touch with Vatglobal to find out what a team of world class VAT experts supported by technology can do for your business.