The introduction of the e-invoicing regulations in the Kingdom of Saudi Arabia (KSA) by the Zakat, Tax, and Customs Authority (ZATCA) is aimed to increase efficiency, transparency, and convenience for businesses in making taxable supplies.
However, it is crucial for you to consider certain aspects while selecting the e-invoicing software in KSA and understand how e-invoicing in Saudi Arabia. This article explains key considerations before choosing e-invoicing software for your business.
What is e-invoicing software?
e-Invoicing software is a computer programme that allows you to generate and validate all e-invoices, including credit/debit notes and store them electronically. ZATCA has made it mandatory for businesses to use compliant e-invoicing solutions to issue and validate e-invoices.
Why does e-invoicing software in KSA matter?
e-Invoicing software is crucial for the taxpayers since they are compulsorily required to issue e-invoices for all their taxable supplies from 4th December 2021. Moreover, the authority requires the taxpayers to use compliant e-invoicing solutions that meet the specifications and comply with the e-invoicing regulations accurately.
Apart from the regulatory requirement, the e-invoice software simplifies your e-invoice generation and validation rather than making it too complex for you.
ClearTax e-Invoicing software in Saudi Arabia is one such ZATCA-compliant e-invoicing software that enables you to automate the e-invoice issuance procedure. It helps you comply with the regulations since all the invoices are issued considering the e-invoicing regulations carefully.
Features you should look for in an e-invoicing software
When there are multiple e-invoice softwares available in the market, you must carefully select one so that you are ensured of the e-invoicing compliance in Saudi Arabia and make the e-invoicing process more efficient and effective.
Let’s look at the key features you should look for in the e-invoicing software in KSA:
Generation, validation, and printing capabilities
The e-invoicing software must incorporate the ZATCA-compliant procedures and e-invoicing regulations to generate and validate the e-invoices in the manner specified by the authority. Moreover, the software must also print the e-invoice with necessary fields such as QR code, cryptographic stamp, etc.
One of the most important features you should look for in the e-invoicing software is integration. If your software can’t smoothly integrate with the ZATCA’s system, you may face numerous issues, from invoice generation and validation to invoice printing.
An e-invoicing software that quickly and accurately integrates with the ZATCA’s e-invoicing portal will reap the efficiency, transparency, and security benefits.
The e-invoicing software in KSA must be able to issue different types of e-invoices, such as standard e-invoices, simplified e-invoices, and summary e-invoices, including debit/credit notes. If you have a Point of Sale (POS) machine at your retail shop, you must integrate your invoice generation requirements with the POS software you use.
You must be able to generate various e-invoices since the authority has mandated the e-invoicing in Saudi Arabia from 4th December 2021.
Reliability and integrity
The e-invoice software must be reliable and generate e-invoices that can not be modified and tampered with. It must ensure that no unauthorised access is allowed while generating the e-invoice, complete security control, and user login management.
All the regulatory requirements regarding e-invoicing must be complied with by the e-invoice software so that in case any requirement is missed, the software must indicate which requirement is not met.
When you first start using e-invoicing software in KSA, you may have lots of queries and questions to ask. For that, you will need customer support that answers your questions quickly.
Look for a compliant solution that offers you continuous customer support and solves your queries within a reasonable time.
What should you not do while selecting e-invoicing software?
You must be careful while selecting an e-invoicing software and should avoid an e-invoicing software that:
- Allows modifications in the stamping key
- Permits tampering with the QR code
- Allows edits in sequencing the e-invoices
- Allows manipulations in the issued e-invoices
- Has poor customer management capabilities
Hence, your e-invoicing software must not allow editing e-invoices. Instead, you must follow a practice wherein case you need to make changes to the e-invoice, you should issue credit/debit notes.
Thus, understanding the regulations for e-invoicing in Saudi Arabia and its requirements for e-invoice software in KSA is crucial to avoid non-compliance penalties.