eInvoicing for Saudi Arabia In Oracle Fusion Cloud

eInvoicing for Saudi Arabia In Oracle Fusion Cloud

eInvoicing for Saudi Arabia In Oracle Fusion Cloud

E-invoicing in Saudi Arabia is governed by the Zakat, Tax, and Customs Authority (ZATCA, previously known as GAZT). The requirements are designed to ensure transparency, compliance, and standardization in the invoicing process. Here are the key requirements for e-invoicing in Saudi Arabia:

1. Compliance Timeline:

• Phase 1 (Generation Phase): Effective from December 4, 2021. Businesses are required to generate and store electronic invoices and notes.
• Phase 2 (Integration Phase): Effective from January 1, 2023. Businesses must integrate their e-invoicing systems with ZATCA's platform.

2. Invoice Format:

• Electronic invoices must be generated in a structured format (e.g., XML) or an unstructured format (e.g., PDF/A-3 with XML embedded).
• The invoices must include mandatory fields as specified by ZATCA.

    Mandatory Fields:

• Seller's and buyer's name, address, and VAT registration number.
• Invoice date and unique invoice number.
• Description of goods or services provided.
• Quantity and unit price of goods or services.
• VAT rate and amount for each line item.
• Total amount payable inclusive of VAT.

3. Security Features:

• Invoices must include a QR code for simplified invoice validation.
• Digital signatures may be required to ensure the authenticity and integrity of the invoices.

4. Storage and Archiving:

• E-invoices must be stored electronically and be accessible for at least 6 years.
• Invoices must be stored in a tamper-evident format to prevent unauthorized alterations.

5. Integration with ZATCA:

• Businesses must integrate their systems with ZATCA’s platform for real-time or near-real-time invoice reporting.
• The system should be capable of generating unique cryptographic stamps.

6. Types of Invoices:

• Standard Tax Invoices: Issued for B2B transactions. Must include all mandatory fields and the QR code.
• Simplified Tax Invoices: Issued for B2C transactions. These also need to include a QR code but have fewer mandatory fields compared to standard tax invoices.

7. Technical Requirements:

• Systems must comply with the technical specifications outlined by ZATCA, including API standards for integration.
• The system should be able to handle different types of VAT rates, discounts, and other commercial terms.

8. Penalties and Compliance:

• Non-compliance with e-invoicing regulations can result in penalties, including fines and other administrative actions.

9. Training and Readiness:

• Businesses are encouraged to train their staff and ensure that their systems are ready for compliance with e-invoicing requirements.
• For more detailed and updated information, it is recommended to refer to the official ZATCA guidelines and consult with local tax advisors.

Solution: - eInvoicing for Saudi Arabia In Oracle Fusion Cloud

• Create Invoices: Generate invoices in Oracle Fusion as usual, ensuring that all required information, such as customer details, itemized charges, VAT amounts, and invoice dates, are accurately entered.

• Tax Compliance: Verify that VAT and other applicable taxes are correctly calculated and reflected on the invoices.

• E-Invoice Generation: Use Oracle Fusion’s e-invoicing features to generate the invoice in the required electronic format (typically XML or JSON). This may involve using a specific e-invoice template compliant with ZATCA standards.

·  Middleware system – Oracle Integration Cloud (OIC) 

     OIC will receive the invoice data from Oracle Fusion in addition to this it generates UUID, Invoice counter value, previous invoice hash and invoice hash values to the invoice data and converts the file into ZATCA acceptable format

     Integration with ZATCA Portal:

      API Integration: Implemented API integration between Oracle Fusion and the ZATCA e-invoicing portal. Oracle Fusion may need to connect with ZATCA’s system using APIs to upload invoices directly.