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Tax and SAP add-ons

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KSA e-invoicing a phased rolled out

General Authority of Zakat and Tax (GAZT) issued the final electronic invoicing on 4 December 2020, setting out that it will be mandatory for resident taxpayers to issue, save and modify e-invoices by 4 December 2021. The regulations specify the terms, requirements, and conditions of electronic invoices and electronic credit and debit notes.

E-invoices must be issued from 4 December 2021 (first phase). The second phase will come into effect at a later date. In that phase, the taxpayers’ SAP system of issuing electronic invoices and debit and credit notes must be linked with GAZT’s systems to share data and information. GAZT will start with a post-audit method, and in the second phase, move to a clearance model.

E-invoicing and VAT

According to the legislation, the e-invoice will be a tax invoice, and non-compliance will result in tax penalties. The provisions relating to proof of electronic transactions and electronic signatures provided for in the Electronic Transactions Law in force in KSA will apply to e-invoices and notes issued.

E-invoices must be issued in Arabic. The e-invoicing provisions apply to all taxable supplies subject, including the zero VAT rates and resident and non-resident consumers).

What do we offer

In the first phase, the KGT SAP add-on extracts the e-invoicing data and transforms it into legal format (XML). As KSA will not have automated submission up and running, the KGT SAP add-on facilitates that the XML generated can be uploaded.

In the second phase - when KSA has published its APIs for communication, the SAP add-on installed can subsequently be quickly configured with those APIs to submit automatically via the setup batch job.

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