Full definchen for the E- invoices

Electronic billing

Tax Invoice and Simplified Tax Invoice

Hsssp is an accounting system specialized in the application of the Zakat and Income Authority’s systems for issuing invoices, whether 1- tax invoices business to business 2- simplified tax invoices business to Client

According to the directives of the Zakat and Income Authority to issue, save and send invoices in electronic form using an electronic system, starting from December 4, 2021. Hsssp an electronic system compatible with the requirements of the Zakat and Income Authority. Hsssp invoices include the mandatory fields stipulated by the Zakat and Income Authority, where the value-added tax registration number is added in If he was registered in VAT and the date of supply of the sold products in the tax invoice

Article prepared by the Zakat, Taxes and Customs Authority

All rights reserved.

First : Definitions

Electronic Invoice: A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that is converted into an electronic format through copying, scanning, or any other method is not considered an electronic invoice for the purposes of this Regulation.

Electronic Notes: Debit and credit notes that must be issued in accordance with the VAT Law and its Implementing Regulation, and which are issued in a structured electronic format through electronic means. Paper notes that are converted into electronic format through copying, scanning, or any other method, are not considered electronic notes for the purposes of this Regulation. Integration of electronic invoicing systems: Integrating the systems for issuing electronic invoices and electronic notes with the Authority systems with the aim of sharing data and information in accordance with the controls, technical requirements and procedural rules that will be approved and issued by a Governor resolution based on the provisions of this Regulation. Persons obligated to issue Electronic Invoices and Electronic Notes: Persons subject to this Regulation as stated in article (three) of it. The Regulation: The E-invoicing Regulation issued by a decision of the Authority board of directors regarding issuing Electronic Invoices and Electronic Notes.

The Governor: The Governor of the General Authority of Zakat and Tax.

second:: Persons subject to this Regulation

The following are subject to this Regulation

• Taxable person that is a resident in the Kingdom. • The customer or any third party that issues a tax invoice on behalf of the taxable person that is a resident in the Kingdom according to the VAT Implementing Regulation.

Persons subject to this Regulation in accordance with paragraph (A) of this article must issue Electronic Invoices in respect of all their transactions which require the issuance of tax invoices, in addition to issuing Electronic Notes in cases that is required by the VAT Law and its Implementing Regulation.

Persons who are not resident in the Kingdom are not required to issue Electronic Invoices or Electronic Notes for supplies or amounts received which are subject to tax in the Kingdom.

Third : Technical specifications and procedural rules

Persons subject to the provisions of this Regulation must adhere - as a minimum

- to the standards, requirements, technical specifications, and procedural rules

stipulated in this Article, in relation to Electronic Invoices and Electronic Notes,

as follows:

The Governor may specify any controls, requirements, technical specifications

or additional procedural rules related to the Electronic Invoices and Electronic

Notes, including those related to issuance, processing, transmission, recordkeeping, integration with electronic invoicing systems, and the exchange or

sharing of data or information related to them.

For the purpose of this article, the technical solution includes the hardware,

software, networks, integration means, meantain and exchange of information

associated with the Electronic Invoices and Electronic Notes.

• The technical solution used to issue Electronic Invoices and Electronic

Notes must be able to connect to the Internet.

• The technical solution used to issue Electronic Invoices and Electronic

Notes shall be able to connect with external systems using the Application

Programming Interface (API).

• The technical solution used to issue Electronic Invoices and Electronic

Notes is tamper proof and should include a mechanism that allows to detect any tampering performed by the user or any other party.

• The technical solution used to issue Electronic Invoices and Electronic

Notes shall consider all requirements and controls which relate to data or

information security or cyber security applied in the Kingdom

Fourth: The stages of issuing electronic billing

In accordance with the directives of the Zakat ,tax and customs Authority to issue, save and send invoices in electronic form using an electronic system,

a. The stage of issuing electronic invoices and electronic notices, including those provisions related to the processing and preservation of electronic invoices and electronic notices, which apply to all persons subject to the electronic billing regulation on the fourth of December 2021.

The stage of linking electronic billing systems, sending electronic invoices and electronic notices, and sharing their data with the authority, which is applied to all persons subject to the electronic billing regulation in stages, starting from the date of January 1, 2023 AD, and according to the periods to be determined later in accordance with Clause VI of this decision.

Fifth: Types of electronic bills

Divided into: Tax Invoice and Simplified Tax Invoice

:

Tax Invoice:

Tax invoice: It is the invoice that is issued from one facility to another facility, and it is issued when:

a. Supplies of taxable goods or services, whether at the base rate or zero rate.

b. Exporting goods or services from the Kingdom.

g-. Intra-regional supplies in accordance with the provisions of the Agreement, the Law and the Regulations.

d-.. Supplies assumed by the taxable person in accordance with the provisions of the agreement, law and regulation.

h. Any payment received by a taxable person in connection with a supply of taxable goods or services prior to the occurrence of that supply

.Simplified Tax Invoice

The simplified tax invoice is the invoice that is issued from a business to an individual

Sixth: Elements of electronic bills

Ensure that your facility is equipped with a system compatible with the requirements of electronic billing (invoice) for the first stage (issuance stage).

Issuing electronic invoices and keeping them through electronic billing systems and not issuing handwritten invoices or text editing programs.

Issuing electronic invoices in a systematic manner in accordance with VAT regulations. In addition, make sure of the following:

Tax Invoice

Add the VAT registration number of the buyer if he is registered in VAT. QR Code can (optionally) be added

Simplified Tax Invoice

Commitment to add a QR Code through the technical solution in accordance with the requirements of electronic billing.

*- Invoice type If the invoice is issued on behalf of a person, it must be stated that “the invoice was issued by a third party on behalf of

The serial number that identifies the invoice-*

QR Code -*

Invoice Issue Date -*

Merchant name and address-*

Tax Number -*

Description of the item or service -*

The price of the good or service-*

Quantity Sold-*

*-Total amount (excluding value added tax

VAT Amount-*

*-Total invoice value (inclusive of value added tax

,. *QR Code*: A code that is generated and displayed on the invoice containing specific information: Information to be available in the response code by December 4, 2021:

Supplier name-

VAT supplier registration number

date and time timestamp of invoice or notice

Total invoice including tax

The total value Vat

HSSSP  is compatible with the Zakat , taxes and customs Authority

HSSSP System is an accounting system specialized in the application of the Zakat , taxes and customs Authority

systems for issuing invoices, whether

1- Tax invoices from one facility to another facility

2- Simplified tax invoices from one facility to an individual.

In accordance with the directives of the Zakat , taxes and customs Authority

to issue, save and send invoices in electronic form using an electronic system, starting from December 4, 2021.

HSSSP an electronic system compatible with the requirements of  the Zakat , taxes and customs Authority

HSSSP Invoices include the mandatory fields stipulated by the Zakat and Income Authority, where the value-added tax registration number is added in If he was registered in VAT and the date of supply of the sold products in the tax invoice, as well as adding the QR code in the simplified tax invoice

As a business or business owner, all you need to do to comply with electronic invoicing by December 4, 2021:

With According, I guarantee your readiness by December 4, 2021, in implementation of the directives of the Zakat and Income Authority