The purpose of E-Invoicing is to avoid the use of paper and introduce an electronic format for invoices, debit notes and credit notes that can be exchanged between the buyer and seller. KSA has introduced the E-invoicing requirement and all ERP users are required to implement this with ZATCA compliant E-invoicing.
Useful links
The official site of ZATCA defines the purpose, requirements and preparation of the business in great detail and can be referred in the links given below:
https://zatca.gov.sa/en/E-Invoicing/Pages/default.aspx
https://zatca.gov.sa/en/E-Invoicing/PreparingYourBusiness/Phase1/Pages/How-to-prepare.aspx
While there are local solutions that cater to this need we often find that customers who have implemented a global solution from Sage do not want to change their software for an entity in Saudi. Having multiple ERP solutions does not allow you to have a single source of truth for consolidated accounting at a group level.
ZATCA with Sage ERP solutions
Triad has implemented E-invoicing using Sage ERP solutions in Saudi Arabia (KSA). We would like to highlight some of our observations with regard to the same:
- We can enter or upload all seller and buyers required details in English and Arabic. We can see these details on the Sage screen and display them on Tax Invoice. Similarly, we can enter/upload and display item descriptions.
- The QR code needs to have the following fields – Seller Name, Tax Reg Number, VAT Amount, Total Invoice Amount. We also got additional clarification on how to segregate them from each other so ZATCA QR code reader can read the QR code and display these details.
- There is some confusion in B2B illustrated tax invoice regarding discount. We do understand that we need to add one more column after discount to show Taxable amount after discount.
Sample ZATCA Invoice
Click here to download a sample E-invoice created on Sage 300 ERP based on ZATCA definitions. Do note that this is a mere sample. The requirements of individual customers in terms of formats can be met in an implementation.
Sample-Tax-Invoice.pdf (0 downloads)Disclaimer:
Triad is not a Tax Advisory company and is not an expert and Authorized to advise on it. however we are reflecting on our experience as a leading Sage partner in the region for implementing this with Sage ERP solutions