The Zakat, Tax and Customs Authority (ZATCA) published, on Friday, 28 May, the decision setting out the controls, requirements, technical specifications, and procedural rules necessary for implementing the provisions of the E-Invoicing Regulation.
It is worth noting that the implementation of e-invoicing (FATOORAH) will take place in two phases:
Phase One: Generation Phase
This phase will become mandatory on 4 December 2021. It requires all taxpayers subject to the E-Invoicing Regulation to generate and store invoices electronically through an electronic system compatible with ZATCA's systems.
Phase Two: Integration Phase
This phase will be implemented gradually, beginning on 1 January 2023. It aims to establish integration between taxpayers' electronic systems and ZATCA's systems. Taxpayers will be required to comply with the technical specifications and requirements applicable to the second phase of e-invoicing (FATOORAH). ZATCA will determine the stages for integrating e-invoicing systems and notify the targeted groups at least six months before the specified integration date for each stage.
ZATCA called on all businesses subject to the E-Invoicing Regulation, as well as providers of point-of-sale system services, to review the decision and familiarize themselves with its requirements to ensure their readiness ahead of the launch of the e-invoicing project (FATOORAH), scheduled for 4 December of the current year. ZATCA also invited businesses to consult the simplified guide to implementing e-invoicing (FATOORAH) requirements through the link provided.
On 18 March, ZATCA had published a draft of the controls, requirements, technical specifications, and procedural rules necessary for implementing the provisions of the E-Invoicing Regulation on the “Istitlaa" platform, operated by the National Competitiveness Center, to solicit feedback from the public and other interested parties.
It should be noted that e-invoicing (FATOORAH) aims to help businesses fulfil their obligations, increase tax compliance, reduce the scale of transactions in the shadow economy, and combat commercial concealment.