September 30, 2020
Saudi Arabia launches consultation on e-invoicing
On 17 September 2020, Saudi Arabia’s General Authority of Zakat and Tax (GAZT) issued draft amendments to the Value Added Tax (VAT) Implementing Regulations. The amendments are intended to introduce e-invoicing in Saudi Arabia. The GAZT has invited businesses to provide their comments and observations on the draft amendments by 17 October 2020.
Saudi Arabia is undertaking various initiatives to digitalize the economy. In the context of those initiatives, the GAZT announced its intention to introduce e-invoicing in Saudi Arabia, publishing draft amendments to the VAT Implementing Regulations on 17 September 2020.
The draft regulations published by the GAZT cover the following aspects around the proposed e-invoicing rules:
The introduction of mandatory e-invoicing will impact current business processes and system landscapes, requiring businesses to adopt digital tax accounting and reporting to meet the new compliance obligations. Businesses should begin to develop a strategy for implementing e-invoicing in Saudi Arabia.
For additional information with respect to this Alert, please contact the following:
Ernst & Young and Co (Certified Public Accountants), Riyadh
Ernst & Young and Co (Certified Public Accountants), Jeddah
Ernst & Young and Co (Certified Public Accountants), Al Khobar
EY Consulting LLC, Dubai
Ernst & Young LLP (United States), Middle East Tax Desk, New York