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Frequently Asked Questions on VAT

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How can I prepare to generate e-invoices?

All you need is an e-invoicing system that’s compliant with ZATCA. If you’re already using an electronic solution for your accounting needs, check whether it is compliant with the rules and test it out before the deadline. The e-invoicing system that you use can be an online cash register, e-invoicing software installed on your system, or a cloud-based e-invoicing solution. If you use a cloud solution, VAT compliance becomes even easier, as the system can adapt automatically to all the tax updates as they happen.

Here are some of the technical requirements for your e-invoicing system:

  • Internet connectivity
  • User management capabilities or access restrictions
  • API (Application Programming Interfaces) connectivity with ZATCA
  • Must generate a Universally Unique Identifier (UUID)
  • Must generate an e-invoice with a digital signature, a sequential number which differentiates each e-invoice, a hash value, and a cryptographic stamp
  • Tamper-proof features (must not permit any changes to be made to invoices already issued)

The last four requirements will be mandatory starting in Phase 2 of the e-invoicing regulations being rolled out.

Avoid any e-invoicing system that:

  • Allows anonymous access (non-registered users shouldn’t be able to access your system)
  • Allows e-invoices and associated notes to be edited
  • Allows multiple e-invoice sequences to be created
  • Allows the time entered to be modified
  • Allows the stamping key to be exported

In addition to these requirements, make sure that you stay updated via ZATCA’s website, so you and your technical team will be aware of any changes to the regulations.

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