The food industry in Saudi Arabia is undergoing a major digital transformation with the introduction of E-Invoicing through ZATCA. By introducing this technology, businesses are now able to improve their efficiency and reduce costs associated with traditional paper-based invoicing.This strategic move empowers the food industry to stay competitive and become more agile in today’s rapidly changing business landscape.
What is e-invoicing (Fatoorah) in Saudi Arabia?
In Saudi Arabia, ZATCA introduced e-invoicing, which is commonly referred to as Fatoorah, and the software used for e-invoicing is known as Fatoorah software. The goal of e-invoicing is to transition from traditional paper invoicing to electronic formats. This process enables the exchange and processing of invoices, credit notes, and debit notes between buyers and sellers in a structured, electronic format using an integrated electronic solution.
How is E- invoicing is implemented in Saudi Arabia ?
In Saudi Arabia, e-invoicing is implemented through the use of the electronic invoice system (EIS) developed by the General Authority for Zakat and Tax (GAZT). The system is designed to automate the invoice process and enable electronic transactions between businesses and the GAZT. The EIS also includes a number of security features to protect the integrity of the data transmitted.
There are two phases for implementing E-invoicing :-
Phase 1
Taxpayers can generate and store e-invoices using an e-invoicing system (Fatoorah) compliant with ZATCA. The mandatory fields for e-invoicing include:
- Seller’s name
- VAT registration number
- Time
- VAT total
- The value of the invoice inclusive of VAT.
Taxpayers can generate and store e-invoices using an e-invoicing system (Fatoorah) compliant with ZATCA. The mandatory fields for e-invoicing include:
- Seller’s name
- VAT registration number
- Time
- VAT total
- The value of the invoice inclusive of VAT.
Phase 2
During the integration phase, businesses will be required to connect their e-invoicing system with the ZATCA system for verification. Businesses will be notified of the integration requirement six months in advance. The focus of this phase will be on technical requirements, such as connecting to external systems using :-
- APIs
- Generating a UUID
- Digital signature
- Unique invoice number
- Cryptographic stamp
Advantages of E-invoicing for the F&B industry.
E-invoicing eliminates manual processes, reduces errors and increases efficiency. Systems can be integrated with other software, such as accounting and inventory management system, to streamline processes and improve automation. This also speeds up the invoice processing and payment cycle, allowing for faster payments and improved customer service.
Increased efficiency and cost savings: E-invoicing eliminates the need for manual processes, reducing errors and increasing efficiency. It also reduces printing, mailing, and storage costs.
Improved cash flow: E-invoicing speeds up the invoice processing and payment cycle, allowing businesses to receive payment faster.
Better compliance and record keeping: E-invoicing systems automatically maintain records and ensure compliance with tax laws and regulations.
Enhanced data analysis and reporting: E-invoicing systems generate detailed reports and analytics, providing businesses with valuable insights into their sales and financial performance.
Better customer service: E-invoicing allows businesses to provide customers with real-time access to invoices and payment status, improving customer service and communication.
Increased automation and flexibility: E-invoicing systems can be integrated with other software systems, such as accounting and inventory management systems, to streamline processes and improve automation.
Conclusion
In conclusion,the adoption of e-invoicing through ZATCA is a strategic decision for F&B businesses in Saudi Arabia. It leads to greater cost savings, increased efficiency and improved data accuracy. At Limerr, we are dedicated to providing comprehensive tech solutions for F&B businesses to empower their digital transformation journey and gain a competitive edge.
Our products comply with ZATCA’s e-invoicing regulations and encourage the full embrace of digital solutions for an efficient and streamlined experience for both businesses and customers.
Let’s Talk Your Business Needs!
Request Free Quotation
