Zameer

eInvoiceMe Staff
Staff member
www.einvoiceme.com
API webhooks ERP integration for ZATCA Phase 2
Standalone Platform
Arabic / English
Customizable ( customize your invoice templates design flow )

eInvoiceMe Phase 2 Implementation starting for SR 12,000

Contact us today at support@einvoiceme.com or +966503659839

Support All ERP Integration or Middleware
Oracle
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See sample invoices at the end of this message (scroll down)

يمكنك الاشتراك في البرنامج مجانا - إصدار الفواتير - إذا أعجبك البرنامج - تدفع مقابل الاشتراك
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يمكنك أيضًا التسجيل عبر الإنترنت
المرحلة الثانية من الفوترة الالكترونية مرحلة الربط والتكامل
اوراكل ساب مايكروسوفت
ERP​




eInvoiceMe electronic invoicing solution provider is doing a complete integration with any erp ( Oracle SAP Microsoft Dynamics 365 )
Contact us for more details




On 24 June 2022, Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) published the updated electronic invoicing (e-invoicing) implementation resolution (currently available only in Arabic). This follows the conclusion on 10 June 2022 of the public consultation on the updated draft implementation resolution issued on 27 May 2022. The implementation resolution forms part of the e-invoicing regulations released in December 2020 and, together with its annexes and related technical specifications, mainly is relevant for the integration phase of e-invoicing that will go live on 1 January 2023. The first phase of e-invoicing (the generation phase) has been operational in Saudi Arabia since 4 December 2021.

The ZATCA also confirmed in its 24 June 2022 announcement (available only in Arabic) that it will implement the integration phase in waves and that the first wave will comprise businesses resident in Saudi Arabia that reported taxable revenue exceeding SAR 3 billion in their 2021 VAT returns. The selected taxpayers will be notified by the ZATCA and will be required to comply with the integration phase requirements by 1 January 2023, in accordance with Administrative Resolution No. 62737 issued on 22 June 2022.

Key changes

The key changes to the e-invoicing implementation resolution including related annexures (i.e., data dictionary and extensible markup language (XML) and security feature implementation standards) are as follows:

  • It is not necessary to obtain cleared invoices and notes from the ZATCA for the purpose of claiming a deduction for input VAT, until notified otherwise by the ZATCA.
  • For standard tax invoices:
    • Inclusion of a cryptographic stamp in XML format invoices will be mandatory as from 1 January 2023; however, it is not required to be printed on the human-readable invoice format;
    • Special billing arrangement and transaction type flags such as third party, nominal supply, and export, or summary invoices, are not required to be included in the human-readable invoice format; and
    • Addition of an explanation to various fields including VAT registration number, and additional seller and buyer identification.
  • For standard tax invoice credit and debit notes:
    • Addition of an explanation to the type of note (credit or debit) field; and
    • Inclusion of a note issuance time field that will be mandatory in the XML version, but not required to be printed on the human-readable invoice format.
  • For simplified tax invoices:
    • Special billing arrangement and transaction type flags such as third party and nominal supply, and summary invoices, are not required to be included in the human-readable invoice format;
    • Inclusion of a date of supply field that will be required in both the XML and the human-readable invoice format, where certain conditions are met;
    • Inclusion of purchase order and contract number fields that will be optional in both the XML format invoices and human-readable invoice format; and
    • Addition of a special tax treatment field that is required in XML e-invoices where certain conditions are met, but that is not required to be printed on invoices in human-readable format.
  • For simplified tax invoice credit and debit notes:
    • Addition of an explanation to the type of note (credit or debit) field; and
    • Inclusion of a note issuance time field that will be mandatory in XML e-invoices but not required to be printed on the human-readable invoice format.
  • Update to the type of encryption of the cryptographic stamp signature from RSA (Rivest, Shamir, Adleman) to ECDSA (Elliptic Curve Digital Signature Algorithm).
  • Introduction of international standard ISO 8601 to specify the format of the timestamp in the QR code.
  • Changes to various business rules in the data dictionary and XML implementation standards for validation of the XML invoices.
The ZATCA also has indicated unofficially that the first wave taxpayers will be penalized if they are not fully compliant by 1 July 2023. However, the formal e-invoicing implementation date remains 1 January 2023 and penalties for noncompliance still could apply as from 1 January 2023 as stipulated in the VAT legislation. Taxpayers need to ensure that they comply with the e-invoicing integration phase requirements based on the notification sent to them by the ZATCA and initiate the process to analyze and deploy the necessary changes to their information technology and other business systems.

Content provided by Deloitte Saudi Arabia.
 
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Zameer

eInvoiceMe Staff
Staff member

Executive summary​

On 24 June 2022, the Saudi Arabia Zakat, Tax and Customs Authority (ZATCA or Authority) issued the final Controls, Requirements, Technical Specifications and Procedural Rules for Implementing the Provisions of the E-Invoicing Regulation (including the xml implementation standards, e-invoice security features implementation standard and data dictionary) for Phase 2 (Phase 2 Regulations), which would be effective from 1 January 2023.

Phase 2 Regulations will form an important base for taxpayers to complete e-invoicing implementation under Phase 2 which is also called the Integration Phase. Under this phase, the relevant businesses must integrate their systems with the Authority's system in order to obtain a clearance for Tax Invoices (including the corresponding debit and credit notes) and report the transactions for which Simplified Tax Invoices (including the corresponding debit and credit notes) have been issued.

The Integration Phase will be implemented in waves and based on the announcement on the ZATCA portal dated 24 June 2022, resident businesses with a taxable turnover of more than SAR3 billion in the calendar year 2021 are part of the first wave and should comply with the e-invoicing Phase 2 requirements between the period 1 January 2023 to 30 June 2023.

The final Phase 2 Regulations have now crystallized both the operational and technical requirements mandated as part of Phase 2 of the e-invoicing system in Saudi Arabia based on which the impacted businesses should start taking the relevant actions.

Detailed discussion​

Background​

On 4 December 2020, the ZATCA introduced e-invoicing in Saudi Arabia, through the release of the Electronic Invoicing Regulation, which had been planned to be implemented in the following two phases:

  • Phase 1 was to be effective from 4 December 2021. This phase mandates generation of e-invoices and e-notes, including provisions related to its processing, and record keeping.
  • Phase 2 will be effective from 1 January 2023. This phase mandates integration of the taxpayer’s system with the ZATCA along with transmission of e-invoices and e-notes and sharing them with ZATCA. This will be implemented by the ZATCA notifying the criteria for the resident taxpayers along with the effective date for them, the earliest being 1 January 2023.
Electronic Invoicing was introduced in Saudi Arabia as an extension of the economic renaissance and digital transformation that Saudi Arabia has been witnessing with the intention of achieving positive results of raising the level of consumer protection and reducing hidden economy transactions.

The Phase 2 Regulations which were previously released on 28 May 2021 contained requirements to be complied with under Phase 1 and Phase 2, respectively, by resident businesses. However, the ZATCA had mentioned that the requirements listed under Phase 2 of e-invoicing would be reviewed and the regulation amended in due course. Accordingly, ZATCA released on 24 June 2022 the amended and final Phase 2 Regulations.

Overview of the key amendments to the updated e-invoicing legislation​

The key changes noted in the Phase 2 Regulations are meant to address the feedback received from the taxpayers who have participated in the ZATCA’s Phase 2 e-invoicing pilot testing program and to reflect certain changes in the ZATCA’s IT model.

Some of the key changes made by the ZATCA in the xml implementation standards and the data dictionary are:

  • Amendments to the requirement to mention certain data fields between mandatory, conditional or optional
  • Amendments to the business rules for validation of the xml invoices
  • Revisions to the process with respect to authentication of the taxpayer’s EGS with ZATCA by adding a secret value component
  • Removal of categorization of a Value Added Tax Identification Number (VAT ID) into a Group VAT number and individual VAT number
  • Inclusion of Fields for the Purchase Order and Contract Identification Numbers
With the release of the Phase 2 Regulations, the ZATCA will commence notifying certain taxpayers who are mandated to go-live with Phase 2 from 1 January 2023 (i.e., the first wave of the phase 2 e-invoicing regime). It is expected that more notifications will be sent in the coming weeks to taxpayers, based on their turnover, together with their respective go live dates under Phase 2.

Implications​

All resident businesses who are registered for VAT in Saudi Arabia and have taxable supplies above SAR3 billion for the calendar year 2021 are required to implement Phase 2 of e-invoicing between 1 January 2023 to 30 June 2023. Non-compliant resident businesses will be subject to penalties as prescribed in the VAT legislation.

Resident businesses should comply with obligations under the Phase 2 Regulations based on the notification sent to them by the ZATCA and undertake the relevant steps in making the required changes in their business and information technology landscape.



For additional information with respect to this Alert, please contact the following:

EY Consulting LLC, Dubai​

  • Aamer Bhatti, MENA Indirect Tax Leader

Ernst & Young Professional Services, Riyadh​

  • Mohammed Bilal Akram, Indirect Tax
  • Tina Hsieh, Indirect Tax
  • Ajay Garg, Indirect Tax
  • Aliasgar Hussaini, Indirect Tax

Ernst & Young Professional Services, Jeddah​

  • Mohsin Rehmani, Indirect Tax

Ernst & Young Professional Services, Al Khobar​

  • Sanjeev Fernandez, Saudi Arabia Indirect Tax Leader
  • Gavin Needham, Indirect Tax

Ernst & Young - Middle East, Bahrain​

  • Ali Almahroos, Indirect Tax

Ernst & Young LLP (United States), Middle East Tax Desk, New York​

  • Asmaa Ali
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.

Content provided by E&Y
 

Zameer

eInvoiceMe Staff
Staff member

Business value​

The Electronic Invoicing service allows businesses to fully automate the electronic invoicing process end to end. This includes issuing Tax and Simplified invoices to submitting electronic invoices to the tax authorities for clearance or reporting purposes.

This feature concludes the implementation of electronic invoicing in Saudi Arabia by addressing extended requirements.

Feature details​

The Saudi Arabian Authority announced and published electronic invoicing regulations on December 4, 2020. According to the regulations, the electronic invoice is defined as an invoice generated, stored, and amended in a structured electronic format through an electronic solution, which includes all the requirements of a tax invoice. A handwritten or scanned invoice isn't considered an Electronic Invoice. The details can be found in the Regulation.

Requirements are mandated in phases:

  • Phase 1, known as the Generation phase, requires taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements. Phase 1 is enforceable as of December 4, 2021. The Electronic Invoicing service has supported this scenario since 2021.
  • Phase 2, known as the Integration phase, will be rolled out in waves by targeted taxpayer groups starting January 1, 2023. Phase 2 will introduce technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s (Zakat, Tax and Customs Authority) systems.
To comply with these Phase 2 requirements, the following functionality is implemented:

  • Generation of XML files of Tax and Simplified electronic invoices in the format legally required in Saudi Arabia.
  • Submission of Tax electronic invoices to Saudi Arabia tax authorities for clearance purposes.
  • Submission of Simplified electronic invoices to Saudi Arabia tax authorities for reporting purposes. (Not in scope of this preview.)
  • Generation and submission of electronic invoices for simplified invoices issued at Commerce point of sales (POS) to Saudi Arabia tax authorities. (Not in scope of this preview.)
Note
The Saudi Arabia e-invoice integration feature is available only as a capability within the Electronic Invoicing service.


Electronic invoicing overview​

  • Article
  • 10/20/2022
  • 2 minutes to read
  • 6 contributors
Feedback
Electronic invoicing for Microsoft Dynamics 365 Finance and Dynamics 365 Supply Chain Management is a hyper-scalable multitenant service that enables configurable processing of electronic invoices and configurable electronic document exchange. The processing and integration rules are fully configurable, and the logic is run outside Finance and Supply Chain Management. The service is targeted mainly at processing of electronic invoice documents in business-to-government scenarios. However, it can be custom configured for other purposes, such as business-to-business scenarios for different types of the documents.

Electronic invoicing can help you achieve the following goals:

  • Fast and easy adoption of country/region-specific requirements
  • Standardized implementations of an Electronic invoicing solution
  • Enhanced traceability of document history
  • Shorter implementation cycle
  • Reduced total cost of ownership (TCO)
  • Easily adjustable configurations that don't require code changes
  • Simplified configuration packaging
  • Built-in export, import, and integration, and easy extensibility in the processing of electronic invoice documents
  • Easy reuse of the same export, import, and integration configurations across companies

Service availability​

Currently, Electronic invoicing functionality is available for Finance and Supply Chain Management customers. For more information, review the license terms and conditions for your application.

Because functionality that addresses country/region-specific requirements might be limited at different phases of the release, you should always review the most up-to-date documentation that highlights the coverage and scope of supported country/region-specific solutions.

Electronic invoicing is deployed in the following Azure geographies:

  • United States
  • Europe
  • United Kingdom
  • Asia
  • Japan
  • Switzerland
  • Brazil
  • United Arab Emirates
  • Australia
  • Canada
  • France
  • India
  • Norway
  • South Africa
Note
Electronic invoicing doesn't support on-premises deployments.

Feature highlights​

  • Out-of-box integration with Finance and Supply Chain Management
  • A consistent user experience for the configuration and monitoring of the electronic invoice process for all countries and regions
  • Faster, easier, and less expensive adoption of Electronic invoicing solutions in new countries or regions
  • Configuration of the service through the setup of Regulatory Configuration Service (RCS) and Globalization features
  • Transformation of business data into multiple electronic invoice formats (XML, JavaScript Object Notation [JSON], TXT, and comma-separated values [CSV]) by using configurations that are defined in RCS:
    • Electronic reporting (ER) formats that are available for countries and regions where configurability for electronic invoice transformation isn't available
  • Configurable submission of electronic invoices to external web services, including certification handling through digital signatures:
    • Built-in, easily extendable, and configurable integration with additional content for several countries and regions
  • Handling of responses from web services, including configurable handling of exception messages
  • Support for electronic signatures (for example, electronic signatures that use the XMLDSig signing algorithm)
  • The capability to sending documents to emails and store them in SharePoint
  • Batch processing of electronic invoice messages
  • Configurable transformation of incoming documents, and processing of those documents in Finance and Supply Chain Management
  • The capability to receive incoming documents from channels such as email and SharePoint

Privacy notice​

Enabling and using Electronic invoicing might require that limited data be sent. This data includes the organization's tax registration ID. This data will be transmitted to third-party agencies that are authorized by the tax authorities for the purpose of sending electronic invoices in the predefined formats required for integration with government web services. Data that is imported from these external systems into this Dynamics 365 online service is subject to our privacy statement. For more information, see the "Privacy notice" section in country/region-specific feature documentation.
 

Zameer

eInvoiceMe Staff
Staff member
Thanks for joining today’s meeting. It was nice discussion with you. In continuation of our discussion, please find the enclosed deck for eInvoicing, proposal, sample invoice PDF A3 with embedded XML & XML as per ZATCA guidelines. Our solution would be fully compliant as per ZATCA guidelines.



A few key features of our solution are:



  • We can integrate with single or multiple accounting or ERP systems through API, S-FTP, manual upload & input file format will be Excel, CSV, JSON, or XML.
  • Options to use a standalone application with manual data entry options.
  • We are a load and transform the system. It means once data is loaded to our application, we can do the necessary transformations to transform data as per ZATCA format to generate eInvoices.
  • eInvoiceMe supports custom invoice PDF format developments with logo, branding, formatting & QR code (as per ZATCA norms).
  • We have a tenant-sub tenant concept that will be useful for group companies or Audit /advisory firms for managed services.
  • Auto email to customers with an invoice attachment.
  • eInvoiceMe supports pushing invoices directly to the printer.
  • Our solution can be easily integrated with any ERP’s such as MS Navision, MS Axapta, SAP, Microsoft Dynamics AX 2009 and AX2012, Tally, Oracle, Inhouse ERP’s & other ERP’s.


Hope our application exactly suits your requirement. If revenue is crossing 3 billion SAR in the last financial year, then eInvoicing is mandatory from Jan’23.

Link for 3 billion news https://zatca.gov.sa/en/MediaCenter/News/Pages/News_912.aspx from ZATCA.

As discussed, we support both input & output customization with multiple integration methods & file formats. We are very keen to offer our eInvoicing services to your esteemed organization. We look forward to working with you.



If the customer is availing of our phase 1 services, then by default all phase 2 features will be covered in it and our pricing for both phases are the same.

If you have any queries, please feel free to reach us.
 

Zameer

eInvoiceMe Staff
Staff member
At eInvoiceMe, we have completed ZATCA Phase II integrations for 300+ customers in Saudi Arabia -​



Our clients were integrated for Phase II successfully within just a few weeks of using our cloud based solution. Here’s why they chose a cloud based middleware for their ZATCA E-invoicing requirements and why you should too.​



  • Integrate with any system : eInvoiceMecloud-based E-invoicing solutions work as a middleware between your ERP/ POS/ E-commerce/ Handheld systems and ZATCA.
  • One single API for all E-invoicing requirements : Middleware designed to cover all ZATCA requirements including ZATCA data validations, additional fields (Hash, Counter value, Cryptographic stamp). APIs to support Device registration of EGS, Integration with Fatoora portal, Archival of E-invoices, PDF A/3 download, digital exchange of E-invoices with end customer.
  • Separate sandbox and production setup of middleware : Test out all scenarios in our sandbox environment before go-live on production
  • Always updated with new ZATCA updates : Any new updates or requirements from ZATCA incorporated in cloud middleware to avoid frequent changes in source systems
  • Reliable and auto-scalable infrastructure : Infrastructure scales to support millions of invoices generation in a few seconds. In-built backup and Disaster Recovery (DR) platform to ensure business continuity.
  • KSA data residency and security : Cloud servers and DR infrastructure hosted inside KSA. ISO, SOC 2, VAPT certifications to provide enterprise grade security
  • 24 * 7 Support : Dedicated Customer Success Manager, 24*7 telephonic helpdesk to support with error scenarios, Skilled Tax expert team to help with Tax and compliance queries


CTOs and CFOs appreciate the cloud based middleware solution as Total Cost of Ownership is lesser as compared to on-premises solution. Cloud solutions with constant upgrades, fully managed backup, DR, archival, 24*7 support - guarantees no more change requests and hidden costs in the long run.



If you are looking to switch to a solution with 300+ success stories of Phase II integration,
please check www.einvoiceme.com or call me on +966 50 3659839
 

Zameer

eInvoiceMe Staff
Staff member
eInvoiceMe Phase 2 Implementation starting for SR 12,000
Invoices can go to your customers directly by SMS or WhatsApp

Contact us today at support@einvoiceme.com or +966503659839

Support All ERP Integration or Middleware
Oracle
SAP
Microsoft

ODOO


SAMPLE INVOICES
Simplified Tax Invoices
B2B
B2C
B2G
C2G
C2B


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