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 | - | 
Oct 1, 2022 |
Business value
The Electronic Invoicing service, Microsoft's platform offering of a no-code/low-code e-invoicing solution, 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 with addressing extended requirements.
Feature details
The Saudi Arabia Authority announced and published the electronic invoicing regulations on December 4, 2020. According to the regulations, the electronic invoice is defined as an invoice that's 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 is not considered an electronic invoice. The details can be found in the Regulation itself.
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. Electronic Invoicing service has supported this scenario since 2021.
Phase 2, known as the Integration phase and rolled out in waves by targeted taxpayer groups starting January 1, 2023, will involve the introduction of Phase 2 technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with the ZATCA (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.
- Generation and submission of electronic invoices for simplified invoices issued at Commerce point of sales (POS) to Saudi Arabia tax authorities.
Note
The Saudi Arabia e-invoice integration feature is available only as a capability within the Electronic Invoicing service.