Saudi Arabia: GAZT E-invoicing FAQ
GAZT issued an FAQ on E-invoicing in order to offer further clarifications as well as a simplified guide. From the guide and the FAQ there are 5 takeaway points to be taken under consideration.
1. A scanned copy of the invoice does not constitute an E-invoice.
2. E-invoices and E-notes* will be mandatory in KSA for all taxpayers. Deadline for implementation of E-invoicing is December 4 2021 not including non-resident taxpayers.
3. Mandatory storing of records regarding E-invoices and E-notes will be the same to existing tax-invoices in KSA. Any changes in content will be rolled out separately by way of resolution.
4. E-invoicing will be rolled out in two phases:
- Mandatory to issue and store E-invoice using electronic solution
- Electronic solution used to issue E-Invoice in phase I is to be linked with
GAZT’s system
5. There won’t be any changes in VAT return mechanism pursuant to roll out of E-invoicing.
Many countries are introducing E-invoicing and adapting their current systems to the new digital standards. The introduction of mandatory E-invoicing to will have an impact on business processes and both governments and businesses will have to develop strategies for implementing these new standards.
*Debit notes and credit notes
Source: VATupdate.com