E-invoicing is a procedure of converting the issuing of Documented invoices into an electronic process that allows to exchange and processing of invoices, credit notes, and debit notes in a structured electronic format between buyer and seller through an integrated electronic solution.
Benefits: E-invoicing can increase efficiency in transactions by making trade more seamless and efficient, and result in faster payments and reduced costs, whilst providing the government with greater insights into market conditions.
Tax Invoice
An invoice that is usually issued by a Business to another Business (B2B), containing all tax invoice elements.
Simplified Tax Invoice
An invoice that is usually issued by a Business-to-consumer (B2C) containing all simplified tax invoice elements.
How E-Invoicing (Fatoora) Works- A Guideline:
SIMPLIFIED GUIDELINES FOR E-INVOICING
This contains the requirements for all taxpayers subject to the E-Invoicing Regulation to prepare and update their invoicing solutions for phase one (generation phase) and phase two (integration phase).
E-INVOICING DETAILED GUIDELINES
This guide contains requirements for E-Invoicing (FATOORAH) as well as technical and security requirements for taxpayers and E-Invoicing providers. It also includes detailed technical requirements such as invoice specifications, data dictionary, and security specifications for the E-Invoicing application.
Laws & Regulations
E-INVOICING BY-LAW
The Authority announced that its Board of Directors has approved the e-invoicing regulations, which were published on Friday, December 4th, 2020. The regulation has become effective starting from the date of publication, providing that the implementation in terms of invoice generation will become mandatory for taxpayers by December 4th, 2021.
THE CONTROLS, REQUIREMENTS, TECHNICAL SPECIFICATIONS, AND PROCEDURAL RULES FOR IMPLEMENTING THE PROVISIONS OF THE E-INVOICING REGULATION (19 May 2023)
Zakat, Tax and Customs Authority on Friday, May 19, 2023, published the updated controls, requirements, technical specifications, and procedural rules necessary to implement the provisions of the E-Invoicing regulation.
