The e-invoicing system in Saudi Arabia is a leading model, designed to reduce paperwork and enhance efficiency. Despite the resources and solutions available, many establishments encounter errors during e-invoice integration, which can slow down compliance and lead to financial penalties.
In this article, we’ll share 8 common mistakes companies face in e-invoice integration in Saudi Arabia, across both the first and second phases, and offer insights on how to avoid and resolve them.
8 Common E-Invoice Integration Mistakes in Saudi Arabia
Errors in e-invoice integration are often technical or operational, and both types can lead to non-compliance with the ZATCA requirements. The most frequent mistakes include:
1. Lack of Software Integration for E-Invoicing
Failure to fully integrate your e-invoicing software with accounting systems is a common issue. This can cause delays in linking with the ZATCA system, specifically with the FATOORA portal.
Solution: Choose a ZATCA-compliant e-invoice provider that facilitates both invoice generation and system integration with the FATOORA portal.
2. VAT Calculation Errors
This issue often arises due to incorrect formulas or inaccurate VAT calculation, leading to pricing discrepancies and customer dissatisfaction.
Solution: Use reliable e-invoicing software capable of calculating VAT correctly and conduct regular audits of issued invoices.
3. Incorrect Invoice Details
Incorrect details, such as customer names or VAT registration numbers, are common issues in e-invoices.
Solution: Perform checks on customer details before issuing the invoice to minimize errors.
4. Missing Mandatory Fields in E-Invoices
Saudi e-invoices must include mandatory fields, such as the invoice number, date, and QR code. Missing these can lead to fines.
Solution: Ensure your e-invoicing software generates invoices with all required fields, and train teams to understand compliance requirements.
Read more: The Importance of QR Code in E-Invoice in Saudi Arabia
5. Lack of Employee Training on E-Invoice Integration
E-invoice requires comprehensive training to avoid errors, yet some companies underinvest in training, impacting productivity.
6. Delayed E-Invoice Issuance in Integration Process
E-invoices should be issued promptly post-transaction. Delays can lead to compliance violations and impact a business’s tax record.
Solution: Automate the e-invoice issuance process and set reminders to ensure timely generation.
7. Editing Invoices After Issuance
Editing e-invoices after issuance can result in a SAR 10,000 fine. Instead, use an e-invoicing system that allows data review before final issuance.
8. Failure to Provide E-Invoices to Customers
Not delivering e-invoices to customers can create transparency issues and lead to penalties. Send invoices via email or SMS promptly upon issuance.
How to Correct E-Invoice Integration Errors in Saudi Arabia
ZATCA can identify errors in simplified e-invoices (B2C) within 24 hours, allowing for quick corrections and resubmission through the FATOORA portal.
E-invoice requirements in Saudi Arabia also mandate sharing a copy of the invoice with the customer immediately. If delivering a printed invoice is difficult, send it via email or another digital channel.
For resubmitted tax invoices (B2B), ZATCA provides flexibility in error handling, allowing businesses to correct the existing invoice or issue a new one after canceling the erroneous invoice.
Read more: E Invoicing Violations Covered by the Initiative of Fines Cancellation
Achieve Seamless E-Invoice Integration with EZ Integrated
ZATCA enforces a phased approach in Saudi Arabia’s second e-invoicing phase, grouping companies based on revenue from 2022 or 2023.
If you’re part of a group nearing compliance deadlines, EZ Integrated offers comprehensive e-invoice integration solutions, ensuring seamless FATOORA portal connectivity without disrupting your accounting systems.
To learn more about our e-invoice integration solutions, or to explore options that ensure compliance with ZATCA requirements, contact us today for a free consultation with our expert team.