Saudi Gazette, 25 August 2021: Saudi Arabia’s Zakat, Tax and Customs Authority has announced an e-invoicing system is going to be launched.
The FATOORAH system is aimed at promoting fair competition, tackling the black market and helping efforts to tackle anti-commercial concealment.
The system will be implemented in two phases.
The first phase will be launched on 4 December this year.
It will apply to taxpayers who are covered by the E-Invoice Regulation.
Tax invoices will have to be created and stored along with related debit and credit notices.
The second phase will be implemented gradually from January next year.
Taxpayers who are regulated by the FATOORAH regulation will have to stop issuing handwritten invoices, or invoices issued manually via text editing software. They will also have to be able to generate and store invoices electronically through a compliant e-invoicing system. This can be a cash register machine, a cloud system, or an enterprise resource planning software. The simplified tax invoices must include a QR code and tax invoices must include the VAT number of the buyer if the buyer is a registered VAT taxpayer.
To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.
Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.