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Answers About E-invoicing

Many taxpayers who meet the conditions for registration in the mandatory value-added tax, the most important of which is the receipt of annual revenues (375,000) riyals. And of course, a tax number was issued to them to know what they should do to be bound by the new invoicing system to be implemented on December 4, 2021, and we at “Jaah” are pleased to participate in helping the taxpayers reach a smooth, easy and complete application.

What Is An Electronic Invoice? 


An electronic invoice is an invoice that is issued, saved, and modified in an electronic format organized through an electronic system and contains all the requirements of a tax invoice.

A handwritten or scanned invoice is not an electronic invoice.


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What Is The Electronic Invoicing System?


The electronic invoicing system is a procedure that aims to transform the process of issuing invoices and paper notices, for example, written by hand or scanned, into an electronic process that allows the exchange of invoices and debit and credit notices and their processing in an electronic format organized between the seller and the buyer in an integrated electronic format.



What Are The Documents That Are Not Classified As Electronic Invoices?


Unstructured invoice data issued in a format such as Word or PDF and scanned paper invoices in any format including but not limited to JPG and unstructured invoices on a web page or in an email.



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What Are Electronic Notifications?

They are the debit and credit notes resulting from modifications to the electronic invoice, such as returning part or all of the purchases or addition, which must be issued electronically without modifying the original invoice.

Paper modifications that are photocopied or scanned are not considered electronic modifications.

What Is The Mechanism For Applying The Electronic Invoicing System?

The mechanism of applying the electronic invoicing system has two main stages:


The first stage: Issuing and keeping electronic invoices and debit and credit notes in an electronic format organized through an electronic system and containing all the requirements of the tax invoice.

The second stage: linking the systems of issuing electronic invoices and debit and credit notes to those charged with the systems of the General Authority for Zakat and Income in order to share data and information.


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Are The Electronic Issuance Of Invoices And Debit And Credit notes Mandatory For The First Stage?


Yes, the mandatory application for issuing and keeping electronic invoices and debit and credit notices will be on December 4, 2021 corresponding to 4/29/1443


What Are The Types Of Electronic Invoices?


Tax Invoice

It is the invoice that is often issued from one facility to another facility, in other words, two parties both have a tax number that contains all the elements of the invoice in addition to the tax number of the supplier.

Simplified Tax Invoice

It is the invoice that is often issued from a facility to an individual, containing the main components of the invoice plus a quick response code or what is called in English  QR CODE

Credit And Debit Notes  

Any amendments to the issued invoices by adding, deducting or canceling completely shall be made by issuing credit or debit notes issued from the same system used to issue the invoice with reference items to the original invoice

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What Is The QR Code?

QR CODE

It is a graphic symbol of white and black squares that e-readers can read and show the data stored by, which are

Supplier name

Tax Number

Timestamp  

Tax amount

Total amount

It is mandatory for the simplified invoice for the first stage and for the tax invoice for the second stage. 

What Are The Components Of An Electronic Invoice?


Supplier name

Supplier tax number

Timestamp

tax amount

Total amount

The tax number of the buyer in the case of dealing between establishments

QR CODE 


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What Are The Procedures To Be Taken Now To Start The Electronic Invoicing Journey?

You must first determine whether you are subject to the electronic invoicing regulation or not, and then assess your readiness to issue and save electronic invoices and debit and credit notes in accordance with the minimum standards and requirements stipulated in the regulation, in addition to following up on the authority’s official channels to keep pace with any additional technical  details.


Jaah Invoicing


It is a system approved by the Zakat, Tax and Customs Authority to provide invoicing  services in full compliance with the requirements of the Authority and in a smooth and accessible way to everyone.

                    

 Jaah Invoicing