Understanding e invoice integration is essential to comply with the second phase of e-invoicing in Saudi Arabia. Businesses subject to VAT in the Kingdom are required to integrate their e-invoice systems with ZATCA’s platform.
In this article, we’ll discuss the unique features of e-invoice integration in Saudi Arabia and outline six steps businesses should follow to ensure seamless integration with ZATCA’s system using solutions from EZ Integrated.
What Makes E Invoice Integration in Saudi Arabia Unique?
The implementation of e-invoicing in Saudi Arabia began on December 4, 2021. VAT-registered businesses were required to issue e-invoices instead of traditional invoices, whether handwritten or generated through basic software tools.
E-invoices in Saudi Arabia must follow specific formats and include mandatory fields, such as invoice number, type, and a QR code containing invoice details, which can be scanned via the ZATCA app.
On January 1, 2023, the second phase of e-invoicing, referred to by ZATCA as the Integration Phase, was launched.
This phase mandates businesses to integrate their e-invoicing systems with ZATCA’s platform, known as the FATOORA portal, to ensure compliance.
6 Steps to Simplify E Invoice Integration in Saudi Arabia
Successful e invoice integration relies on businesses preparing their systems to meet compliance requirements and ensure seamless connection to ZATCA’s platform.
Here are six essential steps:
1. Understand the Requirements for E-Invoicing in Saudi Arabia
Each country has specific regulations for e-invoicing. In Saudi Arabia, requirements include generating invoices in XML or PDF/A-3 formats for automated processing.
Mandatory fields include:
- QR code for invoice data.
- Total amount, including VAT.
To start, businesses must familiarize themselves with the elements and technical requirements of e-invoices before proceeding with integration.
2. Implement a Compliant E-Invoicing Solution
The next step is adopting an e-invoicing solution that meets technical and legal requirements for the Integration Phase.
Partnering with a ZATCA-certified e-invoicing solution provider ensures your system generates compliant e-invoices, avoiding penalties or financial risks.
3. Secure and Implement E Invoice Integration
Your current accounting system may generate compliant e-invoices but might require a technical solution to act as a bridge between your software and ZATCA’s platform.
This is where e invoice integration comes into action. Collaborate with a certified provider like EZ Integrated to receive technical support, secure data transmission, and protect your business and customer information from fraud or breaches.
Read more: Step-by-Step E Commerce Invoice Guide for Online Stores
4. Ensure Proper Documentation and Record Keeping
ZATCA mandates that businesses retain e-invoice records electronically for at least six years.
Thus, your e-invoicing system must not only generate invoices but also archive them securely, including backup copies, to meet regulatory requirements effectively.
5. Regularly Update Your E-Invoicing System
E-invoicing laws and technical standards may evolve over time. Keeping your e-invoicing solution updated is crucial to adapt to changes in invoice formatting or integration processes.
When you partner with providers like EZ Integrated, their dedicated technical teams ensure your system remains compliant by monitoring regulations and implementing necessary updates.
6. Train Your Team on E Invoice Integration
Compliance with ZATCA’s requirements is not just a technical matter but also a human one. Regular training sessions for your invoicing and tax reporting teams are essential to ensure they understand and execute e-invoicing processes effectively.
Why Choose EZ Integrated for E Invoice Integration?
E-invoice integration is a vital step in any business’s digital transformation journey. It ensures compliance with Saudi ZATCA’s e-invoicing regulations.
At EZ Integrated, we simplify the integration process, offering efficient solutions tailored to seamlessly connect your invoicing system with ZATCA’s platform. Our solutions deliver speed, accuracy, and robust security.
If you’re looking for a hassle-free and secure e invoice integration process, contact our experts today for a free consultation!