The first phase is from December 4
All taxable individuals and entities should have the facility to issue e-bills through any e-Invoice Generation Solutions approved by the Authority. Officials have warned that inspections will be intensified from December 4, when the first phase of the project begins. Paper bills will no longer have legal validity. The QR code is also mandatory in the bills, officials said. In the first phase, e-invoices are mandatory for transactions between businesses and businesses and the government. However, bills issued by businesses to consumers are not initially required to be eBills. However, there is a stipulation that they must be submitted to the Authority for approval within 24 hours.
Must be connected to the online portal
Individuals and entities liable for payment of tax should link their e-billing system with the online system of the Zakat and Tax Authority. The proposal also says that software related to this should be developed and checked before December 3 to ensure that they are linked to the Authority portal. The second phase of the project will be implemented from January 2023. With this, customers will have to convert their bills electronically.
Aim to prevent tax evasion
The new plan also aims to prevent trade tax evasion, prevent the sale of counterfeit and substandard products, and detect excessive prices and counterfeit offers. Currently, electronic bills and invoices are valid for all major businesses in Saudi Arabia. The Authority aims to extend this system to the grassroots. The authority also clarified that the tax information should be accurately recorded in the bill. Actions, including fines, will be taken against institutions that violate the law.
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