What’s the purpose of e-invoicing and how will it help me?
ZATCA is making e-invoicing mandatory to standardize the process of reporting invoices and make it more seamless. When you integrate your invoicing system with ZATCA, the government can stay up to date on the invoices that you’ve issued and pushed to the portal. Fraudulent activities such as invoice duplication will be reduced when the invoices are validated by the government, and transactions between people will be made more transparent.
When you issue invoices using a streamlined electronic system, your work becomes more accurate and less prone to the errors that may be made while manually writing an invoice. Recording transactions in the required fields will be easier when the format is already set by the system. Spotting discrepancies will become easier, and calculations will be taken care of automatically.
Moving to an electronic system also means that you can issue your invoices and validate them faster, leading to you getting paid sooner and input tax credits being processed faster.
By issuing and storing your documents in the system, your work is done more quickly and your records are less likely to get lost. This makes tax audits easy, and also simplifies the process of reporting and filing returns as you always have proper records online.