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Electronic Invoicing Regulations in Saudi Arabia for Value-Added Tax (VAT)

Overview

The Kingdom of Saudi Arabia has implemented Electronic Invoicing (E-Invoicing) as part of its VAT regulation. This document outlines the key points and requirements for E-Invoicing, specifically for taxpayers who need to generate and share electronic invoices with customers.

Simplified Tax Invoices

  • Mandatory for B2C transactions: Starting from 4th December 2021, simplified tax invoices are mandatory for Business-to-Consumer (B2C) transactions.
  • Format requirements: Electronic invoices must be generated in XML format or PDF/A-3 (with embedded XML).
  • QR code inclusion: A QR code is required to be included in the invoice, which is compliant with Phase 2 requirements (9 tags in TLV base64 format).

Requirements for E-Invoice Generation

  • Electronic means only: Starting from 4th December 2021, electronic invoices must be generated through electronic means.
  • Invoice fields: Invoice fields should not include non-integration-related fields.
  • Archiving and accessibility: Invoices must be archived as per VAT regulations and accessible at any point in time to the Authority.

Security & Integrity

  • QR code inclusion: Starting from 4th December 2021, a QR code is included with basic invoice and taxpayer information.
  • No cryptographic stamp required: No cryptographic stamp is mandated for Tax Invoice generation.

Timelines

  • First set of requirements: The first set of requirements for E-Invoice generation applies starting from 4th December 2021.
  • Second set of requirements: The second set of requirements, including integration with the Authority’s API, applies starting from 1st January 2023 (in waves by targeted taxpayer groups).

Technical Requirements

  • Internet connectivity: All E-Invoice Solutions must be able to connect to the internet and share invoices with the Authority.
  • API integration: E-Invoice Solutions must integrate with an API published by the Authority.

Compliant Visualized E-Invoices

Examples of compliant visualized E-Invoices are provided in Annex 2, which includes fields required starting from 1st January 2023 (in waves by targeted taxpayer groups).