To comply with Saudi Arabia's tax and E-invoicing regulations and enhance the invoicing and verification process, we have introduced new fields and sections in the Billing Address and Business Field. These updates are enables to ensure accurate tax compliance, streamlined invoicing, and proper customer verification. Please read through the changes carefully to understand how they impact your business transactions.
New Fields in the Billing Address Section
We have added two new mandatory fields specifically for Saudi Arabian customers to capture essential information for accurate invoicing and verification.
Secondary Number:
Purpose: This field captures a 4-digit number representing the accurate location co-ordinates.
Requirement: This is a mandatory field for all businesses operating in Saudi Arabia.
Why is it required? It helps in proper identification and classification of the customer's organization for tax and regulatory purposes.
District
Purpose: This field captures the specific district of the customer's business or residence.
Requirement: This field is mandatory to ensure the accurate classification of the customer's location for tax purposes.
Why is it required? It ensures precise location identification for correct tax compliance.
Introduction of the 'Business Field' section
We have introduced a section titled Business field to capture about the customer's tax and organizational type. Based on the customer's selection, the relevant fields for tax compliance will displayed.
Customers can choose between two options:
- Business (for companies or organizations)
- Individual (for personal accounts)
The fields displayed and required will vary based on the selected type.
Details for Business Type: 'Business'
If the customer selects Business, the following fields must be filled:
Buyer Category
Description: This field allows you to select the Buyer Category from a drop-down list.
Purpose: It classifies the customer based on tax-related categories.
Input: Select the category that applies to the customer.
Available Buyer Categories:
CRN - Commercial Registration Number
TIN - Tax ID Number
NAT - National Account Number
IQA - IQAMA or Residence Number
PAS - Passport ID
MOM - Momrah License
MLS - Ministry of Labor and Social Development
SAG/MISA - Ministry of Investment of Saudi Arabia
GCC - Gulf Cooperation Council
OTH - Other ID
700 - B2G Invoices
Buyer ID
Description: This field captures the alphanumeric Buyer ID associated with the selected Buyer Category.
Purpose: The Buyer ID acts as a unique identifier for tax verification purposes.
Input: The length of the ID will vary depending on the selected Buyer Category.
TRN (Tax Registration Number)
Description: This is a mandatory tax field for all businesses operating in Saudi Arabia.
Purpose: The TRN ensures that the business complies with Saudi Arabian tax laws.
Input: Enter the TRN, which is a unique identifier assigned to the business.
Note: Without a valid TRN, the business cannot proceed with invoicing in Saudi Arabia.
Details for Business Type: 'Individual'
If the customer selects individual, the following fields will be required:
Buyer ID
Description: This functions similarly to a CPF Number in brazil and acts as a unique identification for individuals.
Purpose: It is used for tax verification purposes.
Input: Enter the alphanumeric Buyer ID based on the selected Buyer Category.
Buyer Categories: Same as listed in the Business section.
TRN (Tax Registration Number)
Description: The TRN is a unique tax identification number required for individual taxpayers.
Purpose: Ensures accurate tax reporting and compliance in Saudi Arabia.
Input: The TRN can contain up to 15 alphanumeric characters.
Mandatory Field: It is compulsory for all tax-related transactions.
