GCC Indirect Tax Digest
August 18, 2021
ZATCA publishes detailed e-invoicing guideline
The Kingdom of Saudi Arabia (KSA) Zakat, Tax and Customs Authority (ZATCA) has published a detailed electronic invoicing (e-invoicing) guideline in Arabic and English. The first phase of e-invoicing is expected to be implemented in KSA by the end of this year.
The guideline provides a detailed overview of e-invoicing in KSA, including the phased rollout, the scope of e-invoicing and taxable persons and transactions subject to e-invoicing, and types of e-invoices.
In addition, the guideline contains details about the requirements that must be met by e-invoicing solutions in order to be compliant with the e-invoicing technical requirements. This includes guidance on the requirements to be met for each phase, document formats, prohibited functions, and security and data storage and archival requirements.
As previously announced, there will be two major phases: (1) the Generation phase and (2) the Integration phase.
The go-live date for the first phase is 4 December 2021, and the go-live date for the second phase is 1 January 2023. The latter will be implemented in a phased roll-out, and ZATCA will inform the targeted/selected taxpayers six months before integrating with the Authority’s system.
The technical specifications documents referred to in the Implementation Resolution such as the Data Dictionary, XML Implementation Standard and Security Implementation Standards have also been released. Further, ZATCA has also issued the e-invoicing simplified guideline and FAQs.
Businesses in KSA should take action as a matter of priority to ensure that they are in compliance with the e-invoicing requirements by the applicable deadlines.
For more information about these requirements and how Deloitte can assist you with preparing for the implementation of e-invoicing, please contact Marjolein van Delft, Doukje de Haan, Andreas Agapiou, Muhammad Hatif, or your usual Deloitte contact.
ZATCA publishes VAT guideline on Government Bodies
ZATCA has published a Value Added Tax (VAT) guideline in Arabic concerning Government Bodies in KSA.
The guideline is intended to provide Government Bodies with clarifications with respect to the interpretation of Economic Activity for VAT purposes, in addition to the VAT treatment of transactions between persons and such bodies.
In addition, the guideline provides information on the VAT treatment of activities undertaken by these bodies, especially those activities that are subject to VAT, and those that are outside the scope of VAT.
This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.