E-invoicing fundamentals

Complete guide to e-Invoicing using Wafeq

An introduction to the electronic bill in Saudi Arabia

In December 2021, Zakat, Tax, and Customs Authority announced a new invoicing system that obliges all taxpayers to issue and save invoices electronically through a billing system compatible with the Authority's requirements. Wafeq offers you this service in a few easy steps. But first, let's define the e-billing system in detail:

e-Invoicing Zatca

What is electronic billing?

Taxpayers residing in the Kingdom of Saudi Arabia must convert their manual invoices and notices into an electronic format that enables the exchange and processing of e-invoices and statements between sellers and buyers in a regulated electronic way.

Neither scanned nor handwritten invoices qualify as e-invoices and are not accepted by ZATCA.

e-Invoicing with Wafeq

Wafeq program is the perfect solution for issuing electronic invoices as it is accredited by Zakat, Tax, and Customs Authority e-Invoicing.

There are two types of tax invoices:

  • Electronic Tax Invoices: These are usually issued for business transactions.
  • Simplified Tax Electronic Invoices: These are typically issued by a company to its customers.

e-Invoicing applies to all persons registered for VAT, and parties that issue tax invoices on behalf of suppliers are required to issue electronic invoices. This excludes non-residents who are registered for VAT.

How to issue an e-invoice using Wafeq?

  1. First, you must create an account on Wafeq.com from the Home Page. Click on Get Started- It's Free or Log in/Sign Up from the top right of the page.

  2. Enter your data, such as name and position/your role in the organization.

  3. After that, the organization information page will open, containing fields to enter the organization's information, like name, number of employees, currency, country, and whether you are registered for VAT.

There are two stages for issuing approved electronic invoices:

Phase 1: Generate the QR Code

Phase 1 Zatca

After creating an approved Saudi organization account at Wafeq, the program will automatically generate electronic invoices that comply with the requirements of the first stage, the most important of which is the generation of the QR code.

The invoices will not be sent to the Zakat and Tax Authority during the first stage.

Make sure to enter your tax registration number in the account settings in your organization details section so that the QR code is generated with the correct information.

The QR code contains the following data:

  • The name of the resource -Supplier's tax number
  • The date and time of issuance of the invoice
  • Amount of the invoice
  • The amount of value-added tax

The QR code is encrypted according to the requirements of the Zakat and Tax Authority. You will not be able to scan it with your mobile camera.

To check the validity of the code, you can use the official Authority App:

on Android

on iPhone

Phase Two: Integration

e-Invoicing ZATCA

The second phase was implemented at the beginning of 2023. Before this time, ZATCA will notify the taxpayers of the second phase at least 6 months in advance.

Wafeq will be ready for the second phase in January 2023, and you will be able to activate your account for the second stage smoothly.

If you receive a notification from the Commission regarding the second phase of e-invoicing? Contact us at help@wafeq.com or 8001110601 to help you set up your account.