e-Invoicing phase 2 for Kingdom of Saudi Arabia

in saudiarabia •  2 years ago 

The goal of electronic invoicing is to replace the customary practice of sending paper invoices with a digital procedure that allows buyers and sellers to exchange bills in a structured electronic format through a single process. E-invoicing also gives the government access to real-time billing information and aids in stopping revenue leaks.

Applicability of the mandate to generate e-Invoices

The e-Invoicing laws require all natural or legal persons who engage out economic activity and are registered for VAT in the Kingdom of Saudi Arabia or are needed to be registered for VAT in the Kingdom of Saudi Arabia to create e-Invoices and comply with the e-Invoicing requirements. As a result, the following taxpayer categories would be covered by e-Invoicing:

According to the VAT Implementing Regulation, a taxable person/business who is a resident in the Kingdom, the customer, or any third party who submits a tax invoice on behalf of the taxable person who is a resident in KSA.

For the purposes of VAT rules, taxpayers who are not residents of the KSA are not required to produce electronic invoices for supplies or sums received that are subject to tax in the KSA.

I want to read more here: https://www.cygnettaxtech.com/blog/phase-2-of-e-invoicing-in-the-kingdom-of-saudi-arabia/

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