How to Prepare Your Business for e-Invoicing in Saudi?

Tally Solutions | Updated on: December 13, 2023

With the first phase of e-invoicing already implemented in Saudi, you may be still trying to find out the benefits of transitioning from the traditional printed invoice to the e-invoice.

You may be a little confused about where to start or what should you do to be prepared enough for this change. If you have such questions and concerns, you are reading the right article and about to find out the complete answers to your questions.

Let’s start with how e-invoicing will positively impact your business.

Benefits of e-invoicing for businesses

By getting rid of paper transactions, e-invoicing saves you the time, money, effort and physical space for file storage. Guess, you must be already aware of all of that. On the other side, e-invoicing also helps you to streamline your business process and ensures transparency in a way books and records are maintained. We have summarised the benefits below:

  • When your business grows and expands, your data and transactions will also grow rapidly. A large number of data and invoices will be transferred and managed quickly and effectively without overwhelming your business with paperwork and traditional transactions. e-invoicing can help shorten all payment cycles your business needs and save all time taken to prepare the paper-based invoice. If you have a B2B business, you will shorten cycles by one-time reporting of B2B invoices which reduces reporting in multiple formats.
Best e-Invoicing (Fatoora) Software in Saudi How to Generate e-invoices Instantly with TallyPrime in Saudi Arabia
  • Save your physical space at work and save the environment too. With e-invoicing, You can save the physical storage space that was required for paper invoices. You will save time, space money and save the planet as you will have no need for printed paper invoices.

  • Auditing invoices will be so much easy and more efficient. e-Invoicing systems provide mechanisms that prevent errors and reduce mistakes. The old regular invoicing methods usually increase the possibility of damage and loss, but with the electronic invoicing systems, you will be able to keep all invoice data in a structured electronic format in an easy safe, and secure way.

  • Customers could have a better relationship and user experience with your business, with more clarity, transparency, and trust of what they buy and who they buy from. The whole process can be maintained with accuracy and effortless transactions with your customers. That could improve accounts reconciliation, customer experience, and the relationship between suppliers and customers.

How to prepare your business for e-invoicing?

  • Use e-invoicing compliant software

Your business will need a smart integrated solution to host all transactions and processes. This is one of the critical requirements for generating and storing e-invoices. The e-invoice software should allow you to generate complaint e-invoices, archive, tamper-proof, and comes with an access control feature. Over and above, the same software should help you manage various business functions such as accounting, inventory, taxation, payroll and much more in an integrated manner.

  • Train your team on how to use an e-invoicing system

Although this change would help and support your business, like any other changes, it will need to be familiar and acceptable first. Training your team will help your employees and organization to be familiar with the system. e-invoicing software that is simple and easy to use will play a key role. It will help your team quickly onboard and use the new system more efficiently.

  • Review your compatibility with e-invoicing requirements

Reading guidelines and user manuals from Zakat Authority's official website, with all related regulations and requirements, will help you create a checklist to avoid mistakes and errors during this great change.

  • Use the right invoice format

Your business model and customer type will identify the right e-invoice format that you need to issue. If you sell to another business (B2B model), you will need to issue a tax e-invoice. In case you sell to individual customers (B2C model), you will need to issue a simplified tax e-invoice with a QR code. Also, ensure all the mandatory details as required on invoices are captured.

e-Invoicing Process

Electronic invoicing, known as e-invoicing, is a concept that aims to change the process of issuing paper invoices and notes to an electronic way of invoicing. The electronic form of issuing invoice allows for the exchange and processing of invoices, credit notes, and debit notes in a structured electronic format between buyer and seller through an integrated electronic solution

e-Invoicing using TallyPrime

TallyPrime, a business management software with a built-in e-invoicing solution can help your business comply with e-invoicing requirements. Take a look at the wide range of e-invoicing features in TallyPrime

  • Generate e-invoices in a single click
  • Print QR code on invoices effortlessly
  • Generate e-invoices for tax invoices and simplified invoices
  • Exclusive e-invoice report will give you a single view of all e-invoicing tasks
  • Intuitive prevention, detection, and correction mechanisms will help you deal with exceptions with ease
  • Supports e-invoice for debit note, credit note POS invoice, and receipts
  • Export e-invoice in an XML file/PDF as per ZATCA (GAZT) requirement
  • Security control and User login management
  • User session log register to view all the log details indicating the entire history of the masters & transactions

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Generate and manage e-invoicing with TallyPrime, a qualified e-invoicing software by ZATCA (GAZT) in Saudi