What is electronic invoicing?
E-invoicing system is a procedure that converts the process of issuing paper invoices and notes into electronic format that allows the exchange of invoices and notes between vendors and procurers then processing them in an organized electronic system.
What is an electronic invoice?
Electronic invoice is an invoice that is issued and saved in an electronic format via an organized electronic system, and contains the requirements of the tax invoice. A handwritten or scanned invoice is not an E-invoice. There are two types of tax invoices (tax invoice, tax bill Simplified tax invoice).
How does electronic invoicing work?
Electronic invoicing will be rolled-out in two phases in KSA (more details about the phases
). For the first phase, enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to today, with invoices issued through a compliant electronic solution and including additional fields depending on the type of the transaction:
More details on the requirements availablehere