Zakat, Tax and Customs Authority (ZATCA) has made it mandatory for taxpayers subject to VAT in the Kingdom of Saudi Arabia, to implement E-Invoicing (Fatoorah). Phase 1 of the implementation requirements will be effective from 4th December 2021.
1. What will change from 4th December 2021?
To be compliant with government rules, ONLY electronic invoices will be allowed. No paper-based invoices will be supported.
A mandatory QR Code will be generated on invoices according to ZATCA’s specifications
No tampering or deletion of invoices will be allowed for closed invoices.
2. Is there a specific format for invoices that must be followed to be compliant?
For Phase 1, no specific format has been prescribed by the authorities. The invoice needs to be compliant with the VAT receipt formats and must contain a QR code.
3. Can compliant e-invoices be printed/emailed from the Zenoti Mobile app?
No, the app does not support the GCC compliant VAT receipt so this capability will not be available from the Zenoti Mobile app.
3. Will QR codes be generated on invoice prints or emails when the invoice is still open?
No, QR codes will ONLY be generated for closed invoices as invoice edits and tampering have been prohibited. This is to ensure only final invoices will contain a QR code.
4. What details will the QR code display upon scan?
As per ZATCA’s guidelines, scanning of the QR code should display these details:
Seller’s VAT registration number
Invoice total amount with VAT
VAT total amount
Invoice date and time
5. What is the deadline for Phase 2?
As per the government, Phase 2 deadline is on 1st January 2023. We'll keep you updated on the developments for Phase 2.
6. What are things you cannot do on 4th December 2021?
Generate manual/handwritten invoices.
Generating invoices that do not fulfil authority's requirements.
Usage of a system that does not comply with the E-Invoicing requirements as published by the authority.
Deleting E-Invoicing after issuing them.