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The E-invoicing and Keeping Pace with Technological Development


Electronic invoicing  has become an urgent necessity to keep pace with the development and digital technology. It has also become part of the system adopted now in many countries of the world, including Saudi Arabia .


 But what is the reason for the emergence of this type of invoicing? Electronic invoicing reduces costs and saves your company time and effort, and also reduces human errors that employees may commit.


E-Invoicing  And  E-Invoices


Electronic invoicing is the process of converting the issuance of invoices to completely electronic.

These electronic invoices are similar to the traditional ones in terms of the information they contain (seller and buyer data, quantity, date, and payment terms). In most cases, the electronic invoice is just a digital copy of the paper invoice itself. 

So,  what distinguishes the content of the electronic invoices? The electronic invoices contain an electronic link that allows access to the electronic payment gateway directly, so certainly the scanned invoice is not considered an electronic invoice.

Advantages Of Using E-invoices

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Flexibility And Ease Of Use


Because of the ease of entering and completing electronic invoices data in a short time through the invoicing system, electronic invoicing is a more flexible process than the regular one that may need a longer time in addition to the lack of the need to print or obtain stamps and signatures for approval.

Safety


Electronic invoices are not affected by factors of time or poor preservation, unlike paper invoices, which can be damaged and lost.

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Keep Pace With Development


The use of electronic invoices may leave a positive impression on customers and encourage them to deal with the company, as it reflects to customers the development of the company.

Savings


Electronic invoices provide many manual processes such as printing invoices, postal dispatch, and storage, which reduces financial costs.

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Eco-friendly Option


In addition to reducing financial costs, not using papers and keeping invoices in a digital system contributes greatly to preserving the environment.

Other Advantages

Saudi E-invoicing

The Zakat, Taxes and Customs Authority in the Kingdom of Saudi Arabia has introduced a nationwide electronic invoicing mandate in order to create a unified format for reading electronic invoices, as all companies that pay taxes will need to convert to the electronic invoicing system. In addition, electronic invoices will help the Zakat, Taxes and Customs Authority to detect any fraudulent invoices.

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The Stages Of Applying E-invoicing  In Saudi Arabia


The stages of applying for E-invoicing in Saudi Arabia started in 2020 and will be completed in 2023, which means that the issuance of paper invoices will no longer be valid, and will go completely to electronic invoicing.

  1. First stage: Issuance stage ( December,  2021)

  2. Second stage: Connection and integration stage (January , 2023)