Is Your Software ZATCA-Approved? What to Check Before You Submit E-Invoice

With Saudi Arabia still on a drive to digital change, the use of mandatory e-invoicing standards is on the frontline. Since the implementation of ZATCA Phase 2, organizations must now provide invoices in real-time via certified software that must adhere to high compliance standards. However, before you press send on your next e-invoice it is important to make sure your software is fully ZATCA-compliant and prepared to face the new environment.

This is what every Saudi business needs to check to be sure that it can comply with the ZATCA Phase 2 requirements and how such an essential process can be made easier with the help of such solutions as QuickDice ERP .

What is ZATCA Phase 2 Compliance?

In two broad phases, ZATCA (Zakat, Tax and Customs Authority) implemented e-invoicing:

• Phase 1: It was concerned with the generation and storage of invoices in electronic form.

• Phase 2: The live phase where businesses will be required to connect to the ZATCA clearance system, where they will send real-time invoices through the secure APIs.

Phase 2 goes a long way in enhancing compliance, requiring all invoices to be cleared digitally prior to issuance of the same to customers. This assists in avoiding fraud, authenticity as well as making tax audits easy.

Software Approval is Important

The use of the software approved by ZATCA is not a choice; it is a law requirement. Non-compliance with certified systems is a risk of getting fines and penalties and distraction of operations. This is why it is important to approve:

• Technical Standard Compliance: The accepted software will be in line with technical and security specifications of ZATCA, i.e. digital signatures, tamper-proofed formats, etc.

• Smooth API Integration: Certified software is integrated with the clearance platform of ZATCA, and the invoices are sent and cleared error-free.

• Audit-Ready Records: Invoices are archived in the necessary format by approved software in order to retrieve them easily in case of tax audit.

Before Submitting Your E-Invoice What to Check

In the event that your business already has e-invoicing software or is planning to upgrade, these are the main checks to be made to be ready to meet the requirements of ZATCA Phase 2:

1. Certification Status

Make sure your software vendor is an official ZATCA-approved vendor. This can be found on the ZATCA web site or with your provider. It is best not to use unapproved tools, even on a temporary basis.

2. Real-Time API Clearance

Make sure your software has been built to support the API integration with real-time clearance that ZATCA Phase 2 needs. That is, invoices will be sent to ZATCA immediately, and you will get a clearance or rejection feedback in real-time.

3. QR Code and Digital Signature Creation

Every invoice must be automatically digitally signed and a QR code embedded in accordance with ZATCA at the time of issuance. This assists the recipients in checking the authenticity of invoices and assists in the process of audit.

4. Information Quality and Verification

The system should be able to check invoice data on the completeness and accuracy before submitting. Wrong or absent fields may lead to failure in clearances, which hold up your billing cycles.

5. Audit trail and archiving

Ensure that your software retains invoices and audit trails in a secure manner at least five years in compliance with Saudi tax regulations. Such records ought to be readily searchable and exportable.

6. Support and Training of Users

Follow-up assistance is important. Find out whether your vendor offers training, frequent updates and dedicated helpdesk support on any clearance or technical problems.

How QuickDice ERP can facilitate ZATCA Phase 2 Compliance

The company is one of the leading providers of ERP. Quickdice ERP knows the dynamics of e-invoicing in Saudi Arabia. They possess fully integrated platform that is ZATCA Phase 2 compliant and that has the following characteristics:

• Perfect API integration to clear invoices on the fly

• Digital signature and QR codes auto-filling

• Real time validation to minimize rejections and errors

• Compliance reporting Auditable secure archiving

• Continuous updates based on the latest regulations of the ZATCA

• Committed local support and training to maintain your staff confident and compliant

Companies that decide to implement QuickDice ERP are able to simplify their compliance process and focus on the basic operations of their business without worrying about compliance snags. 

Conclusion

As the enforcement of ZATCA Phase 2 gains pace, the use of ZATCA-approved software is no longer an optional suggestion anymore, but a requirement. To ensure that all the requirements of clearance, security, and archiving are met, Saudi companies should analyze their systems of e-invoicing critically.

In the event that you require a reliable partner to navigate through this complex landscape, QuickDice ERP offers the entire compliant and simple to use solution to meet the requirements of the Saudi businesses. Get your software approved today and eliminate the confusion as to when you will submit your next e-invoice.