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E-invoicing Regulation

The E-invoicing regulation published by the General Authority of Zakat and Tax of Saudi Arabia in December 4th 2020, aimed to identify the terms, requirements and conditions relating to the Electronic Invoices for VAT purposes in accordance with  the VAT Implementing Regulation. So what does this regulation include?

The E-invoicing Regulation contains seven articles, that altogether help the facilities and anyone dealing with E-invoices to understand the main terms related to E-invoicing, who are subject to this regulation, the provisions, and the obligations.

Article 1 

Definitions

Electronic Invoice:

A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that is converted into an electronic format through copying, scanning, or any other method is not considered an electronic invoice for the purposes of this Regulation.

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Electronic Notes:

Debit and credit notes that must be issued in accordance with the VAT Law and its Implementing Regulation, and which are issued in a structured electronic format through electronic means. Paper notes that are converted into electronic format through copying, scanning, or any other method, are not considered electronic notes for the purposes of this Regulation.

Integration Of Electronic Invoicing Systems:

 Integrating the systems for issuing electronic invoices and electronic notes with the Authority systems with the aim of sharing data and information in accordance with the controls, technical requirements and procedural rules that will be approved and issued by a Governor resolution based on the provisions of this Regulation.

Article Two

Purpose And Scope

Identifying the terms, requirements, and conditions relating to the Electronic Invoices for VAT purposes in accordance with the VAT Implementing Regulation.

Article Three

Persons Subject To This Regulation

Article Four

Provisions Related To Electronic Invoices And Electronic Notes

The provisions related to the:

Chapter (16) of the VAT Law. 
Article (53) of the VAT Implementing Regulation.
 Article (54) of the VAT Implementing Regulation.


 A rticle (66) of the VAT Implementing Regulation.

Article Five

Technical Specifications And Procedural Rules

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The technical solution used to issue Electronic Invoices and Electronic Notes shall consider all requirements and controls which relate to data or information security or cybersecurity applied in the Kingdom, be tamperproof, and should include a mechanism that allows detecting any tampering performed by the user or any other party. In addition to being able to connect with external systems using the Application Programming Interface (API).

Article Six 

General Provisions

The Governor has the authority to determine the time limits to implement the provisions of this Regulation.

The Governor has the authority to determine targeted groups to implement the provisions of this Regulation.

The Governor has the authority to determine the time limits that precede the obligation to implement the integration requirements.

Article Seven

 Enforcement And Obligation

Persons subject to this Regulation are granted a period of twelve (12) calendar months from the date of publication of the Regulation in the Official Gazette to implement the provisions contained in paragraph (B) of the article (three) of this Regulation concerning the issuance of Electronic Invoices and Electronic Notes.