Who is exempted from e-invoicing and eligible for e-invoicing?

The Saudi electronic invoice is an electronic process to convert invoices and notices from the hand-written paper system to an electronic invoicing system that allows the exchange of invoices and credit and debit notes with an electronic system that includes all parts of the invoice with its required elements. Saudi Arabia found a solution to this evasion, and in light of the rapid development of technology, the best solution was electronically through the electronic billing system.

The Zakat and Income Authority in the Kingdom has issued a draft law clarifying who and translating all provisions, controls and procedural rules.

Definition of the Saudi electronic invoice

An initiative presented by the Income and Zakat Authority in Saudi Arabia, integrated and integrated ideas.

It is an invoice, issued, saved, saved, and issued, within an electronic system, between the seller and the buyer.

Electronic invoices include both tax invoices and short tax invoices stipulated in the VAT Law Regulations.

Who are subject to the electronic billing system?

The draft law that was issued by the Zakat and Income Authority has specified some conditions that, if passed on to some persons, become subject to the law.

The electronic billing system must be implemented at the beginning of its implementation, which was announced by the Authority.

This law is subject to all those who are subject to the regulation of the electronic billing system.

Electronic invoices are the tax invoices subject to the value-added law.

It includes everyone who issues tax invoices, simplified tax, and invoices according to the value-added tax system.

All transactions subject to the VAT law and stipulated by law, namely.

Exporting services or goods from the Kingdom of Saudi Arabia to other countries.

Supplies of services and goods subject to the tax law imposed on the terms and conditions of the Kingdom of Saudi Arabia.

Do not worry; do not give up any part of the props.

All supplies assumed by taxable persons.

All persons authorized to issue VAT invoices for a person subject to the VAT Law.

Who are the persons who are not subject to the Saudi electronic billing system?

Persons who import wholesale import and its services inside the Kingdom.

All supplies that are exempt from VAT as stipulated by law.

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All supplies subject to judicial control.

In the case of commercial ownership and is bound by value tax, you will need to issue electronic invoices in sales operations

From paper invoices, in accordance with the Zakat and Income Authority.

What is the format and details of issuing bills and electronic notices?

The Zakat and Income Authority has identified some formulas for electronic invoicing, and everyone should follow them:

Issuing or issuing all customs duties in accordance with the Annex.

Issuance of all tax invoices or the simplified exchange in XML / PDF / A-3 formats, for the periods specified by the Authority.

Subject persons must provide an old copy of their tax invoices, simplified tax invoices and electronic notifications

The same as the previous versions that were issued electronically.

The Authority has allowed the parties to the transaction subject to the egypt e-invoicing Law to share the simplified invoice and notice

The frequency with the previous formulas or any other formats to be agreed upon.

To be located all over the world, as specified in the decision by the Authority.

This is what you achieved of health, goodness and memories, thanks to the health and goodness that you achieved, during the closed periods.

Factors affecting the Saudi electronic bill:

Best accounting software

Explanation of the chart of accounts

Value added tax

Best accounting einvoice software:

The electronic invoice in the Kingdom of Saudi Arabia is linked to overlapping factors.

 Therefore, it is necessary to choose the best accounting program to perform its work perfectly. Its commercial activity.

The chart of accounts explains

Another factor affecting the electronic invoice system is the presence of an accounts tree or it is called the chart of accounts, as for every company or institution that has any commercial activity, there must be main or subsidiary accounts belonging to the company so that it has a prominent role in preparing the company’s financial statements and reports. These are sent Orders through the electronic billing system.

Value added tax

It is imposed by the official authorities indirectly on most of the goods and services that the institution sells and buys.

 In addition, it includes the date, address, name of the supplier and identification number.

 The electronic invoice system needs value-added tax to show the types of discount and other details we mentioned earlier.

What should the facility do to comply with the requirements of the electronic invoice?

An electronic system compatible with the requirements of the electronic invoice is required. 

The Madad system is one of the systems that comply with the requirements of electronic invoice. 

As for the technical requirements for the second phase that were published by the Zakat, Income and Customs Authority, the greatest burden falls on the system providers in implementing them.

 Based on the technical requirements that have been published on the website of the Zakat, Income and Customs Authority, Medad has started preparing for the technical requirements for the second phase of the application of the electronic invoice.

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