/** * 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 */ ?>
On December 4, 2021, the Saudi Zakat, Tax and Customs Authority (ZATCA) started the enforcement of e-invoicing (fatoora) the 1st phase which is also known as the generation phase. In this phase, the taxpayers (excluding non-resident taxpayers) are subject to the e-invoicing regulation must generate and store all types of tax invoices, POS, debit and credit notes in electronic invoice format using compatible e-invoice solution with 1st phase of e-invoicing requirements.
ZATCA is implementing the 2nd phase also known as the integration phase of e-invoicing starting from January 1, 2023, enforced in waves by targeted taxpayer groups. During this phase, taxpayers who are subject to the e-invoicing regulation must comply with all the requirements, integrate, and connect their e-invoice solutions and devices with ZATCA’s system (Fatoora Portal).
|e-Invoicing Formats in Saudi Arabia|
The integration phase, known as phase 2 of e-invoicing, is a system in which the business software, such as accounting software, EPR etc., used by the business, will be integrated with the ZATCA’s system (Fatoora Portal). In this system, once the supplier generates the invoice, the details will be electronically uploaded to the Fatoora portal, which will validate and authenticate the invoice.
Each invoice is digitally signed and added with a QR code after successful authentication. Also, each invoice will have a unique Invoice Reference Number (IRN). Only after the invoices are successfully authenticated and signed by the Fatoora portal, the supplier should issue the invoice to the customer. There are some relaxations given for reporting the B2C invoices.
The first phase was a generation phase that required businesses to generate and store compliant electronic tax invoices and notes using compliant e-invoicing systems. Taking this leap forward, the second phase integrates the business systems with the Fatoora portal and enables the seamless exchange of invoice details electronically.
The integration phase of e-invoice will be mandated from 1s January 2023. In addition to the current requirement of the generation phase (1st Phase), businesses need to prepare themselves for integration phase requirements. Unlike the first phase, the second phase will be implemented in multiple waves.
The first wave is applicable to businesses with revenue exceeding 3 billion from 1st January,2023. The second phase will apply to businesses with revenue exceeding 500 million in FY 2021 from 1st July,2023.
While the first phase of e-invoicing is applied to all VAT-registered businesses, the second phase (integration phase) will first be implemented in multiple phases. These phases are referred to as waves by the ZATCA. In the first wave, all KSA resident businesses with annual taxable revenue exceeding 3 billion should comply with the second phase of e-invoicing requirements starting from 1 January 2023. The annual taxable will be 2021 calendar year and the last date for these businesses to comply with integration phase requirements is by 30th June,2023.
In the second wave, businesses with revenue exceeding 500 million in FY 202 from 1st July,2023 will be required to comply with the integration phase.
TallyPrime, a complete business management software is accredited by Zakat and Tax authority ZATCA as a compliant e-Invoicing (FATOORA) software. With the experience of 30+ years in the market which has gained the trust of more than 2 million businesses worldwide, TallyPrime helps your business generate and manage e-invoicing with ease and takes care of every little detail to bring you the most delightful experience. TallyPrime fully supports the phase -1 of e-invoicing and will be enhanced to support the phase 2 requirements.
Below are some of the key compliance features of TallyPrime:
Reverse Charge Mechanism on Electronic Devices in the UAE Using TallyPrime
TallyPrime’s Flexible Voucher Numbering Capabilities for Accurate Recordkeeping