ERP solutions and accounting software’s are designed keeping in mind the business requirements but may not always capture inputs to meet regulatory requirements. Generation of electronic invoice for KSA (e-invoice Saudi Arabia) also has similar hurdles.
Following points explain the merits of an e-invoicing solution –
- Change management related to statutory & compliances handling may be difficult in ERP: e-Invoice (fatoorah) is new to KSA the tax authority might suggest changes in future based on the feedback and requirements. It might be difficult to make changes to ERP multiple times as an when modifications would be required in phase 1 and phase 2 of e-invoicing implementation at Kingdom of Saudi Arabia.
- Maintenance of ERP by version for regulatory updates (ZATCA / GAZT in this case) would be difficult. Processing of old data by applying rules of the desired time would be difficult to manage within ERP.
- Capturing mandatory and conditional mandatory details as per ZATCA’s data dictionary may be complex for companies using global ERP solution which may not be KSA specific. Any changes by ZATCA / GAZT to the data dictionary might require changes in ERP’s input data which could be complex. If an external e-invoicing software is used such as enInvoice by Taxilla, the development or modification to be done to ERP would be minimized.
- The current ERP may not be scalable to handle both phase 1 and phase 2 requirements of e-invoicing in Kingdom of Saudi Arabia. A simple solution such as enInvoice can meet all these requirements. Example: UUID, hash QR code and cryptographic stamp and API integration with ZATCA portal.
- In phase 1 and phase 2 of VAT e-invoicing in KSA, there are certain technical requirements such as QR code, single sequential invoicing number and previous invoice number in hash QR code. Not all ERPs may be equipped to handle these requirements. In case of such a limitation, a solution like enInvoice by Taxilla would address the regulatory requirement.
- Majority of ERPs do not enable printing of e-invoices in Arabic. In such a case, enInvoice can provide option to print tax invoice in Arabic and English, option to provide digitally signed invoice and enable auto-email to counter party/ recipient.
- The software or solution chosen for generation of electronic invoice must be equipped to handle phase 2 requirements like API integration with ZATCA’s portal, providing embedded cryptographic stamp, generating tax invoice in XML and PDF with embedded XML. If the current ERP is not geared to handle these specifications, then Taxilla’s enInvoice can address the need.
Write to us at email@example.com to discuss on how Taxilla’s enInvoice solution can help you solve your electronic invoicing challenges.