Kitab

E-Invoicing Overview

Why E-Invoicing?

E-invoicing can increase efficiency in transactions by making trade more seamless, efficient, and result reduced costs. Providing government with greater insights on market conditions.

Increased tax compliance rates, provide increased transparency on commercial transactions and allow data-informed decision making for Government.

The following key points should be considered by businesses
operating in KSA:

  • E-invoices must be issued from 4 December 2021 (first phase).
  • At a later date, the second phase will come into effect, whereby taxpayers’ systems of issuing electronic invoices and debit and credit notes must be linked with ZATCA’s systems to share data and information.
  • The e-invoicing provisions apply to all taxable supplies subject to the standard or zero rate of VAT and to both resident and non-resident consumers (i.e. for sales outside KSA).

E-Invoicing Scope

Regulations

KSA resident Taxable persons
Self-billing
Outsourced billing

Invoice Types

Tax Invoices
Simplified Tax Invoice
Credit Notes
Debit Notes

Transaction Types

Supplies of goods and services subject to the 0% or 15% VAT
Export of goods and services (0%)
Intra-GCC supplies (not effective)
Nominal supplies
Advance payments

Exemptions

Exempt supplies
Advance payments related to exempted supplies
Supplies subject to VAT pursuant to Reverse Charge
Mechanism (purchases)
Import of goods into the KSA

E-Invoicing in KSA

The Kingdom of Saudi Arabia (KSA) is the latest jurisdiction to enforce countrywide electronic invoicing, following in the footsteps of an expanding number of countries.

Kitab
E-Invoicing Generation
Solution

1 CLICK
INVOICE GENERATION

SMART

Biz Rules Validation Fast and Accurate Data Processing

SIMPLE

Easy to Use Interface COnfigurable andCustomizable

SAFE

Secure Login Encrypted Data Access Control Tamper Proof

Salient Features

  • Data Validation & Fast and Accurate Processing

    Compliant Solution as per ZATCA Specification Validate invoice items and data for parties before issuing.

  • Configurable & Easy to Use Interface.

    User Friendly, Fast and 99.9 % Available

  • Secure Access & Data Encryption

    Secured System Access and Preventing full data exposure. Safe Data Transmission and Encryption

  • Validate invoice items

    Validate invoice items and data for parties before issuing

  • Print E-Invoice in Arabic

    Print E-Invoice in Arabic (numbers will be in English) with QR Code and UDID

  • Compliant invoice

    Compliant Solution as per ZATCA Specification.

E-INVOICING WORKFLOW

EGS Modules

Outlines various modules of the solution and their purpose

Data Integration

Business can push data into Solution via API, Flat File and Manual Entry. This can be integrated with any ERP.

API : Can push data via APIs and get real time response. Applicable for Online, POS, Real time billing etc.

Flat Files : Solution will provide utility which will fetch data from client ERP and upload on cloud on periodic basis. Applicable for batch invoicing.

Data Validation

Data will be validated by the solution as per VAT rules and regulations. Validation status d results will be available in the solution.

In case of errors, use can error reason and rectify errors before generating e-invoice.

Error rules and messages can be customized. System can also calculate the VAT (if required)

E-Invoice Generation

Solution will generate ZATCA compliance E-Invoice XML, PDF, Email to supplier/buyer on real time basis.

Solution will provide various options like modification of data, download for edit, exclude data based on rules, print single/multiple invoices, many
more utility options

Data Access Control

Multiple Roles will be available for Users like Admin, Preparer, Reviewer.

User will be mapped to Company, Locations User can see data as per mapping (access) defined in the system.

Secure User Login will be implemented, followed by best practices.

Master Data Management

Following masters will be created for data management

  • Company Master(Group)
  • Supplier
  • Buyer
  • Product (VAT Rate)
  • User
  • Location

Auditing

Audit Logs will be maintained for all user activities related to system access. Update history of transaction data will be managed. E-Invoice XML will be archive in Tamperproof Storage

Data Download and MIS Reporting

User can download E-Invoice data in excel based upon filters and access role. Various MIS Reports will be available for downloading data in pre defined formats. In case uploaded data has error user can use option “download for edit” and upload again. Such data will be excluded from the system

Security

User can the application without downloading any software. Platform will host multiple business on single hosting (Multi Tenant Setup) Each tenant will have different transaction database. Database Encryption at rest

On-Time Support

Monthly Billing

Reduce Administrative burden