The Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia continues its phased implementation of the e-invoicing system, known as FATOORAH. As businesses across the Kingdom adapt to this new system, the upcoming waves—10 and 11—within Phase 2 are crucial steps toward full compliance and integration. In this blog, we’ll delve into the specifics of these waves and their implications for businesses.
Wave 10: Streamlining E-Invoicing Compliance
Effective Date: Wave 10 is scheduled to 10 Oct 2024 to 31 Dec 2024
Key Requirements:
- Integration with ZATCA’s Platform: Businesses must ensure their e-invoicing solutions are integrated with ZATCA’s centralized platform. This allows for real-time reporting and validation of invoices.
- Enhanced Data Accuracy: Invoices must contain precise and complete information, including VAT numbers, timestamps, and unique invoice identifiers.
- Digital Signatures: All e-invoices must be digitally signed to ensure authenticity and integrity.
Impact on Businesses:
- Improved Efficiency: The integration with ZATCA’s platform is expected to streamline the invoicing process, reducing manual errors and enhancing operational efficiency.
- Compliance Monitoring: Businesses will need to closely monitor their invoicing processes to ensure ongoing compliance with the new requirements. This may necessitate updates to existing software or the adoption of new solutions.
- Training and Adaptation: Staff will need to be trained on the new system functionalities to ensure a smooth transition and compliance with the new regulations.
Wave 11: Full Implementation and Future-Proofing
Effective Date: Wave 11 is scheduled to 01 Nov 2024 to 31 Jan 2025
Key Requirements:
- Mandatory E-Invoicing for All Transactions: By this wave, all B2B, B2C, and B2G transactions must be conducted using e-invoicing. This includes issuing, receiving, and archiving electronic invoices.
- Advanced Reporting Features: Businesses will need to implement advanced reporting features to ensure that all transaction data is accurately captured and reported to ZATCA.
- Integration with Other Business Systems: Full integration with other business systems, such as ERP and accounting software, will be required to ensure seamless data flow and compliance.
Impact on Businesses:
- Comprehensive Compliance: Businesses will need to ensure that all aspects of their invoicing processes are compliant with ZATCA’s requirements. This includes ensuring that all transactions, regardless of their nature, are processed electronically.
- Technology Upgrades: Companies may need to invest in new technologies or upgrade their existing systems to meet the comprehensive requirements of Wave 11.
- Long-Term Benefits: While the initial transition may involve challenges, the long-term benefits include improved accuracy in tax reporting, enhanced transparency, and reduced risks of non-compliance.
Preparing for Waves 10 and 11
As ZATCA moves forward with its ZATCA Roll-Out: Waves 9 and 11 implementation in Phase of the e-invoicing system, businesses must stay informed and prepared. Here are some steps to consider:
- Assess Current Systems: Evaluate your current invoicing and accounting systems to identify any gaps or areas that need upgrading.
- Invest in Training: Ensure that your staff is well-trained on the new requirements and the functionalities of the updated systems.
- Engage with Solution Providers: Work with your e-invoicing solution providers to ensure that their systems are fully compliant with ZATCA’s requirements.
- Stay Informed: Keep abreast of any updates or changes in the roll-out schedule or requirements from ZATCA.
Timeline and Criteria for Waves 10 and 11
Please see the images below for a detailed timeline and criteria for Waves 10 and 11:
For a comprehensive overview of the earlier waves and to understand the full scope of ZATCA’s e-invoicing initiative, please refer to our detailed blog ZATCA More Phases.
Conclusion
Waves 10 and 11 of ZATCA’s e-invoicing roll-out mark significant milestones in Saudi Arabia’s journey toward a fully digital and transparent tax environment. By preparing adequately and ensuring compliance, businesses can not only meet regulatory requirements but also reap the benefits of enhanced operational efficiency and accuracy.
For more information and assistance with implementing ZATCA’s e-invoicing requirements, contact Smartech ABASM Information Technology at:
Email: sales@sabasminfo.com
Phone: +966133636770