Understanding ZATCA Phase 2
Starting from December 4th, 2021 the Authority mandated that all taxpayers must stop issuing manual invoices and produce all invoices electronically, complying with ZATCA requirements. This process is known as e-invoicing. In Phase 1, e-invoices can be submitted in any electronic file format.
Starting from January 1st, 2023 , Phase 2 has been enforced in waves. As of July 13th, 2024, all taxpayers that earned 30 million SAR or more in revenue in 2021 or 2022 must integrate their electronic solutions with ZATCA by October 1st, 2024.
Phase 2 requires taxpayers to generate e-invoices as XML files and send them to the Fatoora platform APIs.
Key Compliance Steps
Taxpayers must ensure their systems can produce XML files that comply with ZATCA requirements. Taxpayers need to register on the Fatoora platform to generate an OTP (one-time passcode). Their system must have internet access to be onboarded and to submit invoices, debit, or credit notes to ZATCA.
Benefits of Compliance
Being ZATCA Phase 2 compliant ensures adherence to e-invoicing regulations, preventing heavy fines. Taxpayers may recommend their e-invoicing solution to other businesses integrating with ZATCA, enhancing the solution's market reputation.
How Juleb Can Help
All B2B tax invoices made through Juleb are ZATCA Phase 2 compliant across all branches once Juleb receives an OTP for onboarding. Invoices are then automatically sent for clearance.
Juleb Desktop supports onboarding and producing e-invoices for customers using the PoS. All e-invoices produced by Juleb Desktop after a sale transaction are sent for reporting to Fatoora after 3 hours.
One of Juleb’s biggest customer, a Big Retail Pharmacies Chain with approximately 80 branches, has all its devices onboarded for ZATCA Phase 2, producing over 10,000 ZATCA Phase 2 compliant sales daily without hassle.
Conclusion
It’s crucial for businesses to prepare for ZATCA Phase 2 and comply with the e-invoicing regulations to avoid any consequences.
As an all-in-one ERP solution, Juleb provides the necessary tools for seamless integration, including accounting and reporting modules for better insights on statistics and figures related to ZATCA Phase 2 sales.
