Recently the turmoil of pandemic has disturbed everybody globally resulting in a universal economic crisis. Even in the post-pandemic time, the human race is still trying to overcome the recent difficulties and compensate for the financial loss lately. Also, all of the retail businesses need to show tremendous adaptability capacity by conversion to their online versions for successful business operations in 2021. Electronic Invoice Saudi Arabia is mandatory now and in this article, you will find beneficial information about it.
What is Electronic Invoice?
Despite the method of traditional invoicing with paper receipts, the Electronic Invoice is sent electronically over the internet and is easily integrated into the customer’s accounts payable system. Electronic invoicing is the exchange of digitally generated invoice documents between the supplier and the customer in an integrated format.
True Electronic Invoice:
What are the signs of a true electronic invoice? Below-mentioned is two key points:
- Structured invoice data generated in Electronic Data Interchange (EDI) or XML formats.
- Standard invoice data generated using standard internet-based web forms.
Not Real Electronic Invoice:
- Paper invoices
- PDF format of paper invoices scanned or transferred
- Unstructured invoiced data using Word format or Excel format
7 Reasons Why Electronic Invoice is needed in 2021?
There are amazing benefits of electronic invoices in 2021 that have made it essential to be implemented in all businesses:
- Automation of time-consuming and error-prone operations.
- Touchless operations that avoid the employment of unnecessary staff for performing the same tasks
- The cash flow rate is improved exponentially
- Electronic invoicing allows you access to data and helps in the analysis of line-level data that escalates the business growth through better and smart decision making.
- The highly accurate invoices only allow correct data transactions with shorter sales cycles thus resulting in better business relations.
- E-invoicing automatically tracks and monitors the transaction history and complete document journey and so the need for manual work and botheration is eliminated.
- E-invoicing helps in controlling paper consumption and carbon dioxide emissions, resulting in lower operational costs and a higher level of profitability along with the creation of a transparent and honest brand reputation.
What are the Aims of the Saudi Government in 2021?
The ultimate aim of the Saudi government is to ensure a fraud-free and efficient tax and zakat payment department in 2021. For that purpose, GAZT (General Authority of Zakat and Tax) was established on June, 14th 1951. Recently the department of ZATCA (Zakat and Tax Customs Authority) has replaced the responsibilities of GAZT in 2021. As per the latest rules and announcement by GAZT/ ZATCA, E-invoicing in KSA has become mandatory for all types of businesses holding a VAT registered number.
Latest Announcements by GAZT/ ZATCA:
The Electronic Invoice Saudi Arabia suggests that as per the latest announcement by GAZT/ ZATCA you must implement the first phase of implementation of e-invoice by December, 4th 2021 whereas the deadline of the second phase has been extended to January, 1st 2023 to ensure the convenience of all businesses.
The popularity of Electronic Invoice in Saudi Arabia:
All those businesses that were previously unaware of the term Electronic Invoice are also now much familiar with it. December 2020 was the time when GAZT (now known as ZATCA) first decided on the implementation of E-invoice KSA. Ever since every businessman is busy ensuring his business comply with the rules and regulations of GAZT/ ZATCA.
Ensuring a Transparent Zakat and Tax System:
Now the entire zakat and tax payment system in Saudi Arabia will be free of any kind of fraud and errors and thus the complete system will be extremely transparent and honest being a Muslim community and country.
Presenting a Sparkling Solution for your Business:
If you are also residing in the vicinity of Saudi Arabia and running a superstore or restaurant selling your business or brand products to customers, you are invited to utilize automated cloud software for your excellent business management in 2021. You do not need to worry about the electronic invoicing implementation for your small business in such a short time. Rather than that, you can avail any good and reliable cloud software specially designed to fulfill your business requirements in 2021 like that of the E-invoicing in KSA.
Welcome to the Community of SMACC in 2021:
Although life has been challenging for small business owners lately, resilience and adaptation are the best qualities that will always help you rise in any adverse situation. Now you can deploy SMACC software as it already has implemented the latest technology of electronic invoice using QR code as per the E-invoicing Regulations KSA.
All you need to do is get SMACC software for your business management which is an ERP system and offers a complete and integrated solution to your business problems and challenges. Nothing can defeat you now with SMACC standing on your side and helping you achieve your success’ targets.