Saudi Arabia: Regulations on e-invoicing and VAT

Saudi Arabia: Regulations on e-invoicing and VAT

The Saudi Arabian General Authority of Zakat and Tax (GAZT) issued regulations concerning electronic invoicing (e-invoicing), effective 4 December 2020. The new rules must be applied within the next 12 months—by 4 December 2021.

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Regulations on e-invoicing are integral and complementary to the regulations implementing value added tax (VAT) and apply with regard to all taxpayers subject to VAT. The new regulations define the terms, requirements, and conditions related to electronic invoices. For example, the regulations confirm the definition of an electronic invoice to be a tax invoice issued electronically through electronic means, which excludes scans or copies of invoices.

The GAZT is authorized to issue the necessary decisions and instructions to implement the provisions of the e-invoicing regulations.

Along with the regulations, GAZT issued guidelines and a set of “frequently asked questions” (FAQs) that provide further detail on application of the e-invoicing rules. Further guidance on the specifications for issuing and maintaining invoices and debit notices and on connecting billing and notification systems is expected to be issued within 180 days from the date of publication of the regulations.


For more information, contact the head of KPMG’s Global Indirect Tax Services:

Lachlan Wolfers | +852 2685 7791| lachlan.wolfers@kpmg.com

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