09.08.21

Further changes in the e-invoicing mandate

In Saudi Arabia, the deadline for the implementation of Phase 2 of the e-invoicing mandate has been delayed to 1^st January 2023 and it will be implemented in waves by targeted taxpayer groups. Select taxpayer groups will be informed 6 months prior to the go-live date.

In relation to Phase 1 – the Generation Phase, which will be enforced by December 4^th, 2021, there is no prescribed invoice format. However, e-invoices must be issued as a structured file. This means that from the implementation date, paper and PDF invoices no longer qualify as valid tax invoices.

The mandate rules for Phase 2 remain unchanged. E-invoices must be issued in XML/Hybrid (PDF A-3) format and suppliers will need to clear the invoices with GAZT before sending these to buyers. Due to the technical nature of the requirements in Phase 2, taxpayers are encouraged to consult a solution provider or their internal technical teams to ensure their e-invoicing systems comply with ZACTA (General Authority for Zakat and Tax) requirements.