Digital transformation in invoicing is conducted by ZATCA in 2 phases of implementation. Phase one went live in KSA on 4 December 2021. All taxpayers subject to VAT are now required to send e-invoices with specific content in a structured format and e-archive them in accordance with the regulations. This means suppliers can no longer generate or store paper or PDF invoices.
Electronic invoices must have all mandatory fields in accordance with the VAT regulations to have a VAT identification number of the buyer (if the buyer is a registered VAT taxpayer) and a QR code.
The second step will be effective from January 1st, 2023. The suppliers will be needed to produce e-invoices (both tax invoices and simplified tax invoices) in the electronic format as described by ZATCA. After the go-live of the integration phase, electronic invoices must be generated in a specific format with specific fields as per the Electronic Invoicing solution. Starting with the Integration phase the Invoice must be in XML format to be shared with the Authority using the API for both clearance and reporting.