/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
The enforcement of e-invoicing phase one (the generation phase) in Saudi Arabia started on December 4, 2021, applicable to all taxpayers who are subject to e-invoicing regulations. In this first phase, all compatible businesses must generate and store electronic invoices in specific specs and formats instead of traditional old invoices.
This huge transformation in the Saudi economy towards the digital era provides businesses with many benefits, including fair competition, secure financial data, and much more.
The 2nd phase of e-invoicing, also known as the integration phase of invoicing, shall start by January 1, 2023, according to the announcement of The Saudi Zakat, Tax, and Customs Authority (ZATCA).
ZATCA aims to enforce taxpayers connecting and integrating their e-invoice generating solutions and devices with the Fatoora portal for validation, clearance, and other features and transactions needed in the 2nd phase of invoicing.
The integration phase will be implemented in phases and will be mandated to persons subject to the e-invoicing regulations based on a specific set of criteria determined by the authority. In the first wave, integrated e-invoicing will be implemented for businesses with taxable turnover above 3 billion Saudi Riyals in the calendar year 2021. This will be applicable from 1st January,2023. The second phase will apply to businesses with revenue exceeding 500 million in FY 202 from 1st July,2023.
While it will be extended to the remaining business gradually, it is crucial for businesses to know how the integration phase of e-invoicing works. In this blog, we have explained the workflow that will help businesses get a fair idea of the e-invoicing concept.
Before we get to know the workflow of the e-invoice concept, it is important to note that there are 2 key participants of the e-invoicing system. First is the business software such as accounting software/ERP and the second is ZATCA's e-invoice portal. Between these 2, there will be continuous interaction in the process of generating the e-invoice. Given that there are 2 types of invoices – tax invoice and simplified invoices- the e-invoicing process for each of these invoices is slightly different, as explained below. Let's start with step-by-step details that explain how the e-invoicing system works.
Unlike tax invoice, which requires real-time sharing and clearance from the portal, simplified e-invoicing can be authenticated by the business software itself. Therefore, the business's software solution must be compliant and registered with the portal for generating simplified e-invoices. Once the software is registered, here is how simplified e-invoicing work.
TallyPrime is a complete business management software that is accredited by Zakat and Tax authority ZATCA as a compliant e-Invoicing (FATOORA) software. TallyPrime fully supports the phase -1 of e-invoicing and will be enhanced to support the integration phase.
Explore more Products
Reverse Charge Mechanism on Electronic Devices in the UAE Using TallyPrime
TallyPrime’s Flexible Voucher Numbering Capabilities for Accurate Recordkeeping