Integrate e-invoices in retail stores in Saudi Arabia
Important
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| Enabled for | Public preview | General availability |
|---|---|---|
| Users by admins, makers, or analysts | - | 
Nov 28, 2022 |
Business value
This feature addresses the requirements of Phase two of the electronic invoicing implementation in Saudi Arabia as applicable to simplified e-invoices that are generated for sales in retail stores. This feature covers the requirements to submit simplified e-invoices to Saudi Arabian tax authorities in the format legally required in Saudi Arabia. The requirements include the generation and cryptographic stamping of e-invoices, the printing of QR codes in receipts printed for retail sales, and the submission of the simplified e-invoices.
Feature details
The Saudi Arabian Tax Authority announced and published the electronic invoicing regulations on December 4, 2020. According to the regulations, the electronic invoice is defined as an invoice that is generated, stored, and amended in a structured electronic format through an electronic solution. The electronic solution must include all the requirements of a tax invoice or a simplified invoice. A handwritten or scanned invoice is not considered to be an electronic invoice. For more details, see the regulation itself.
Simplified e-invoices are mostly used in B2C transactions where the buyer doesn't need to use the invoice for input value-added tax deduction. In Commerce, simplified e-invoices are generated for cash and carry and customer order sales transactions.
E-invoicing requirements, as applicable to simplified e-invoices, are mandated in phases:
Phase one, known as the generation phase, requires that taxpayers generate simplified e-invoices in human-readable formats and include QR codes that are compliant with Phase one requirements. Phase one is enforceable as of December 4, 2021. Commerce has supported this scenario since 2021.
Phase two, known as the integration phase, will be rolled out in waves by targeted taxpayer groups starting January 1, 2023. It will involve the introduction of Phase two technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA (Zakat, Tax and Customs Authority) systems.
To comply with the Phase two requirements, as applicable to simplified e-invoices, the following functionality is available in Commerce:
- Generation of an XML file of a simplified e-invoice upon concluding a sales transaction in Commerce point of sale.
- Generation of a cryptographic stamp for the simplified e-invoice.
- Generation and printing of QR code for the simplified e-invoice that includes the cryptographic stamp.
- Submission of the simplified e-invoice from Commerce headquarters to Saudi Arabian tax authorities for reporting purposes.
The functionality is available as part of the 10.0.31 service update and as quality updates for the 10.0.29 and 10.0.30 service updates. See this article for more details.
Note
The Saudi Arabia e-invoice integration with ZATCA is available only as a capability within the Electronic Invoicing service.
See also
Generate and submit simplified electronic invoices for Saudi Arabia (docs)