02.23.21

KSA publishes its final e-invoicing regulation

As we reported before, Saudi Arabia is well on its way to mandatory electronic invoicing, only 4 years after the introduction of VAT in the Kingdom.

In autumn of 2020, KSA completed their public consultation regarding the planned e-invoicing regulation, followed by the approval of the GAZT board of directors of the final version of the regulations. This final version has been published in the official Saudi gazette on 4 December 2020 and entered into force immediately on the same day it was published. The regulations contain the framework of the e-invoicing mechanism GAZT is anticipating to apply and the expectation is that businesses in scope of the regulation will be able to comply by 4 December 2021.

While the timeline is very tight, not all details are clear, and it is expected that further details will follow prior to the effective date to help taxpayers comply with the new rules.

This is a tight timeline and businesses in the Kingdom should begin their implementations early in 2021. We see this as a unique opportunity for organisations to leverage digital technology and benefit from more streamlined tax operations.