22nd July 2021 - Saudi Arabia has recently announced the implementation of الفاتورة الضريبية الجديدة in the country. On 4th December 2020, the General Authority of Zakat and Tax (GAZT) issued the regulations for electronic including for the resident fax payers and the third party that issue a tax invoice. It will be applied right after 12 months from the day of the announcement that means from 4th December 2021.
Although GAZT has not announced the theme of particular that they are going to follow. Still, they have cleared out few requirements to fulfill while generating invoicing. In this article, you will have a brief introduction of what is invoicing and how it works.
What is electronic invoicing?
An electronic invoicing is also known as e-invoicing. It is issued and stored in electronic form and is generated through a tamper-proof system. Any paper invoice converged into an الفاتورة الضريبية الجديدة through scanning and copying will not fall in this category.
How it will affect People?
The new invoicing rule will be applied only to residents of Saudi Arabia and the third party issuing tax on behalf of residents. Any non-resident of Saudi Arabia will not be obligated to issue e-invoices.
Why is it necessary?
This initiative offers various benefits over the traditional Electronic billing software Saudi Arabia like
• Shadow economy
• Facilitate tax returns
• Adopt international standards
• Improve global ranking
• Promote fair business competition, etc.
Benefits
Electronic billing software in Saudi Arabia has various benefits. Foremost of them is it is cost-saving. In e-invoicing, you need not spend money on a stack of papers, ink. It will save a considerable amount of money in the long run. Since it will reduce the wastage of paper, it offers protection to the environment. It offers several benefits to the companies also. Since it is a standardized technique, it is to maintain. It comforts the buyers by not making them wait for long.
Conclusion
Although it might seem difficult to work in starting, it will prove to be beneficial in the long run. Digitizing the finance will accelerate your business's growth. Saudi will feel a new age after December 2021.
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