Decoding ZATCA e-invoicing wave 8: Key steps for compliance

Preparation of checklist for e-invoicing phase 2

Getting ready for the Phase 2 implementation involves two crucial aspects. Firstly, a comprehensive understanding of ZATCA’s e-invoicing regulations and guidelines is essential to ensure compliance. Secondly, assessing your internal capabilities to manage e-invoicing or considering the engagement of a technology partner to assist in the integration process is imperative.

Understanding ZATCA’s e-invoicing regulations

Your tax team must stay abreast of the evolving guidelines set by ZATCA by actively monitoring the latest regulatory updates. This proactive approach allows your team to conduct a thorough impact analysis, identifying potential gaps that could hinder meeting your compliance requirements. An illustrative list is provided below, showcasing mandatory, conditional, and optional fields for each electronic invoice. Your tax team should evaluate the relevance of conditional fields to your business operations. Additionally, it's crucial to note that while optional fields might not be included in your e-invoices, your e-invoicing solution must support these fields.

Obligation	Invoice Fields – Phase 1	Invoice Fields – Phase 2
Mandatory	Invoice reference number (IRN) Invoice type description Invoice issue date and time Seller name, address VAT registration number Buyer name and address Goods or services description, unit price and quantity Means of payment	Universally Unique Invoice Identifier in UUID format Previous invoice/node hash  QR code  Tamper-resistant invoice counter value Additional seller ID Subtotal exclusive of VAT VAT category code Cryptographic stamp
Conditional	Self-billing flag Supply date Buyer VAT registration number Special tax treatment	Third-party billed invoice flag Special transaction type flag Additional buyer ID Discount percentage of line item Payment terms Additional notes
Optional	N/A	Purchase order number Contract number

Evaluating internal readiness for e-invoicing

Assess whether your organization possesses the requisite technical infrastructure and a skilled team capable of managing e-invoicing. This includes the ability to: • Continuously monitor ZATCA's evolving rules and guidelines • Interpret guidelines for implementation strategies • Establish and maintain the necessary technical infrastructure for generating, storing, and managing e-invoices • Employ a proficient team comprising legal counsel and IT resources for e-invoicing integration in Phase 2 If your internal assessment indicates that you already possess the necessary technology infrastructure and legal expertise, it's a plus. However, any gaps identified in this evaluation will necessitate seeking support from an experienced technology partner with a global presence.

Ensure ZATCA compliance with Confiz's expertise

Non-compliance with ZATCA Phase 2 integration mandates can result in severe penalties and fines. Businesses must integrate their ERP and POS systems with Fatoora (ZATCA's e-invoicing portal) within specified timelines. Confiz, a renowned global technology expert and Microsoft solutions partner provides seamless integration services for Dynamics ERP and Microsoft Point of Sale systems with ZATCA. With an unwavering commitment, we ensure strict adherence to all ZATCA rules and regulations, establishing ourselves as the preferred partner for comprehensive IT solutions and integrations. Learn more about our services by contacting us at marketing@confiz.com.