All posts tagged: ZATCA; D365 F&O

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Zakat, Tax and Customs Authority Determines the Criteria for Selecting the Taxpayers in Wave 4 for Implementing (Integration Phase) of E-invoicing

Zakat, Tax and Customs Authority (ZATCA) determined the criteria for selecting the targeted taxpayers in the fourth wave for implementing the “Integration Phase” of E-invoicing, as it clarified that the fourth wave included all taxpayers whose revenues subject to VAT exceeded (150 Million Saudi Riyals) during 2021 or 2022. VAT registered taxpayers meeting the criteria should integrate their e-invoicing solutions with (FATOORA) Platform starting from November 1, 2023.

https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1039.aspx

With this update, organizations need to position for a long term strategy instead of short terms plans any more. Those who invest wisely and early will reap the benefit and able to address tech disruptions with better compliance and reporting.

The implementation of Phase 2 of the E-Invoicing system by ZATCA (the Saudi Arabian tax authority) is expected to have a significant impact on businesses operating in Saudi Arabia. Here are some of the potential impacts:

1. Improved Efficiency: E-Invoicing will eliminate the need for paper-based invoices, resulting in a more efficient invoicing process for businesses. This can reduce errors and save time for both the supplier and the customer.
2. Enhanced Transparency: The E-Invoicing system will provide greater transparency into the invoicing process, making it easier for businesses to track invoices and payments. This can help reduce disputes between suppliers and customers.
3. Increased Compliance: The new system will help ensure that businesses comply with tax regulations by requiring them to submit invoices electronically to ZATCA. This can help reduce the risk of penalties for non-compliance.
4. Integration with other systems: E-Invoicing can be integrated with other financial systems such as accounting and payment systems, making it easier for businesses to manage their finances. Howver, this require to use latest tech stack so that the security and mobility options offer better ROI your organization.
5. Cost Savings: With the elimination of paper-based invoicing, businesses can save on printing and postage costs on top of ease of archiving.

However, businesses will need to invest in the necessary technology and software to implement E-Invoicing, which can be a significant expense. Additionally, there may be a learning curve for businesses to adapt to the new system, which could initially impact productivity. Overall, the benefits of E-Invoicing are expected to outweigh the costs and businesses that adopt it will likely see long-term benefits.

mTech is helping organizations to get in compliance with ZATCA and IFRS both and we love to speak with you at your ease. Just drop us an email at [email protected] or call us at +966557729580.