Saudi Arabia established the “Invoice” initiative as part of its attempts to digitalize all government transactions, which contributes to eliminating hidden economic activities and encouraging fair competition, and substantially aids the work of many government agencies to combat commercial concealment.
The project is one of the Zakat, Tax, and Customs Authority’s ambitious national endeavors to accomplish the necessary digital transformation.
The “Fateora” initiative, according to Abanmi, the Governor of the Zakat, Tax, and Customs Authority, is in line with recent trends in the world’s top countries and will have a visible influence on the national economy.
“The initiative will contribute to lowering the hidden economy’s transactions and encouraging fair competition, as well as substantially to the efforts made by many government agencies to combat commercial concealment,” he added.
Saleh Al-Rasheed, the Governor of the Small and Medium Enterprises Authority “Monsha’at,” said that electronic billing has many positive effects on the sector, including providing a fair and attractive competitive environment for growth and prosperity, as well as reducing commercial concealment.
In addition to making it easier to get financing and banking services, electronic invoicing assures the availability of correct financial accounts, and the new method improves the efficiency and operation of facilities while lowering costs by precisely arranging accounting work.
Abdullah Al-Fantoukh, the director of the electronic invoicing project, confirmed that the project’s success is contingent on all parties’ cooperation and that it returns positively by limiting the phenomenon of commercial concealment and the hidden economy, as well as assisting taxpayers in organizing their financial affairs, implying that the project’s impact will be felt in the coming years.
Starting on December 4 of this year, taxpayers who are subject to the electronic billing rule, which mandates the electronic issue and storage of tax invoices and accompanying debit and credit notices, will be subject to the first phase’s application.
The second phase, which will begin in January of next year, will consolidate integration between taxpayers’ electronic systems and the Zakat, Tax, and Customs Authority’s systems.