The Zakat, Tax and Customs Authority (ZATCA) of Saudi Arabia implemented Phase 1 of e-invoicing starting December 4, 2021. This phase included all resident taxpayers and third-party entities issuing invoices on behalf of resident taxable persons. Non-resident businesses (for VAT purposes) were excluded from this initiative.
As a next step, ZATCA plans to roll out Phase 2 of e-invoicing in waves starting January 1, 2023. Taxpayers with a turnover exceeding SAR 3 billion in 2021 are required to comply with Phase 2 in the first wave. VAT-registered businesses with a turnover between SAR 500 million and SAR 3 billion will be included in the second wave, effective July 1, 2023.
This article explores how to generate e-invoices when your ERP system doesn’t support interaction with external systems.
26th July 2024 ZATCA has announced that businesses registered under KSA VAT with a turnover exceeding SAR 5 million in 2022 or 2023 will fall under Wave 14 of Phase 2. These businesses must integrate their ERP/POS systems with the Fatoora portal by 1st February 2025.
28th June 2024 ZATCA has declared that businesses registered under KSA VAT with a turnover exceeding SAR 7 million in 2022 or 2023 will be part of Wave 13 of Phase 2. These businesses are required to integrate their ERP/POS systems with the Fatoora portal by 1st January 2025.
24th May 2024 ZATCA has announced that businesses registered under KSA VAT with a turnover exceeding SAR 10 million in 2022 or 2023 will be included in Wave 12 of Phase 2. These businesses must integrate their ERP/POS systems with the Fatoora portal by 1st December 2024.
Why Does Your ERP Not Allow Interaction with External Systems?
Unlike Phase 1 of KSA e-invoicing, Phase 2 mandates that businesses integrate with ZATCA’s Fatoora portal for the clearance of B2B invoices and reporting of B2C invoices. Consequently, all invoice-generating systems, including billing systems, POS, and ERP systems, need to be integrated with ZATCA to ensure compliance.
However, there are situations where direct integration with ZATCA may not be feasible:
Legacy Systems: Using an outdated ERP system that lacks the necessary integration capabilities.
Customized ERP: Having an ERP that has been extensively customized to meet specific business needs, makes modifications costly or complex.
Security Policies: Strict internal security policies and data-sharing controls that inhibit interaction with external systems.
How Can ADB World Help When You Can’t Connect Your ERP with External Systems?
ADB World offers several solutions to help you comply with e-invoicing requirements, even if your ERP cannot connect directly with external systems:
Export Data to Excel: Export data from your ERP in Excel format and upload it to the ADB World web portal for processing.
Manual Data Entry: Use the web interface or UI forms provided by ADB World to manually enter data and generate e-invoices.
File Transfer Protocol (FTP): Utilize FTP to transfer invoice data from your ERP to ADB World, facilitating seamless data exchange.
Custom API Integration: ADB World specializes in custom API integration to bridge your ERP with external systems, ensuring smooth data exchange and functionality.
By using these methods, ADB World can assist you in generating and managing e-invoices efficiently, ensuring compliance with ZATCA’s requirements.
Conclusion:
As ZATCA continues to expand its e-invoicing requirements, it’s crucial for businesses to adapt and ensure their systems are compliant. Even if your ERP system cannot directly integrate with external systems like ZATCA’s Fatoora portal, ADB World provides flexible and reliable solutions to bridge this gap. Whether through manual data entry, file transfers, or custom API integrations, ADB World ensures your business remains compliant with minimal disruption. Don’t let outdated or customized ERP systems hinder your compliance—partner with ADB World to navigate ZATCA’s e-invoicing requirements with ease.
📞 Call / WhatsApp: +966 58 179 2055 / +966 59 324 3799
📧 Email: info@adbworld.com | 🌐 adbworld.com | 🌐 erpsystemsaudiarabia.com
📍 Location: 4236 King Saud Road – An Nawaras Dist. Unit Number: 11 Dammam 32214 – 6253, KSA
