Electronic Invoicing service – Saudi Arabia e-invoice integration

Important

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Enabled for Public preview General availability
Users by admins, makers, or analysts Aug 1, 2022 -

Business value

The Electronic Invoicing service allows businesses to fully automate the electronic invoicing process end to end. This includes issuing Tax and Simplified invoices to submitting electronic invoices to the tax authorities for clearance or reporting purposes.

This feature concludes the implementation of electronic invoicing in Saudi Arabia by addressing extended requirements.

Feature details

The Saudi Arabian Authority announced and published electronic invoicing regulations on December 4, 2020. According to the regulations, the electronic invoice is defined as an invoice generated, stored, and amended in a structured electronic format through an electronic solution, which includes all the requirements of a tax invoice. A handwritten or scanned invoice isn't considered an Electronic Invoice. The details can be found in the Regulation.

Requirements are mandated in phases:

  • Phase 1, known as the Generation phase, requires taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements. Phase 1 is enforceable as of December 4, 2021. The Electronic Invoicing service has supported this scenario since 2021.

  • Phase 2, known as the Integration phase, will be rolled out in waves by targeted taxpayer groups starting January 1, 2023. Phase 2 will introduce technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s (Zakat, Tax and Customs Authority) systems.

To comply with these Phase 2 requirements, the following functionality is implemented:

  • Generation of XML files of Tax and Simplified electronic invoices in the format legally required in Saudi Arabia.
  • Submission of Tax electronic invoices to Saudi Arabia tax authorities for clearance purposes.
  • Submission of Simplified electronic invoices to Saudi Arabia tax authorities for reporting purposes. (Not in scope of this preview.)
  • Generation and submission of electronic invoices for simplified invoices issued at Commerce point of sales (POS) to Saudi Arabia tax authorities. (Not in scope of this preview.)

Note

The Saudi Arabia e-invoice integration feature is available only as a capability within the Electronic Invoicing service.

See also

Get started with Electronic invoicing for Saudi Arabia (docs)