October 26, 2023

Saudi Arabia and Egypt have both recently adopted electronic invoicing (e-invoicing) for all businesses in their countries.

This is a significant step towards digital transformation and improved tax compliance.

In Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) has implemented a phased approach to e-invoicing.

As of July 1, 2023, all large businesses are required to issue e-invoices.

Medium-sized businesses must begin issuing e-invoices by January 1, 2024, and small businesses must begin by July 1, 2024.

In Egypt, the Egyptian Tax Authority (ETA) has also implemented a phased approach to e-invoicing.

As of September 1, 2023, all large businesses are required to issue e-invoices. Medium-sized businesses must begin issuing e-invoices by December 31, 2023, and small businesses must

begin by March 31, 2024.

Both Saudi Arabia and Egypt have developed official e-invoicing applications that businesses can use to issue and receive e-invoices.

The Saudi Arabian e-invoicing application is called FATOORAH, and the Egyptian e-invoicing application is called Mowaslema.

E-invoicing offers a number of benefits for businesses, including:

• Reduced costs: E-invoicing can help businesses to reduce their costs associated with printing, mailing, and storing paper invoices.
• Improved efficiency: E-invoicing can help businesses to improve their efficiency by automating the invoicing process.
• Enhanced security: E-invoices are more secure than paper invoices, as they are encrypted and digitally signed.
• Improved tax compliance: E-invoicing can help businesses to improve their tax compliance by making it easier for them to track and report their transactions.

The adoption of e-invoicing in Saudi Arabia and Egypt is a positive development that will benefit both businesses and governments in both countries.

Official Application of Electronic Invoicing in Saudi Arabia and Egypt

The official e-invoicing applications in Saudi Arabia and Egypt are:

• Saudi Arabia: FATOORAH
• Egypt: Mowaslema

Businesses can use these applications to issue and receive e-invoices electronically.

The applications also provide a number of other features, such as the ability to track invoice status, generate reports, and connect with tax authorities.

How to Get Started with Electronic Invoicing

Businesses that are required to issue e-invoices in Saudi Arabia or Egypt should register with the official e-invoicing application in their respective country.

Once registered, businesses can begin issuing e-invoices to their customers.

To issue an e-invoice, businesses will need to provide the following information:

• Customer information: name, address, tax ID number.
• Invoice details: date, number, items, price, quantity, tax rate.
• Payment information: payment terms, bank details.

Once the e-invoice has been created, it will be sent to the customer electronically.

The customer can then view and download the e-invoice.

E-invoicing is a simple and efficient way to issue and receive invoices. It offers a number of benefits for businesses, including reduced costs, improved efficiency, enhanced security, and improved tax compliance.