Why third-party SaaS application for e-Invoicing in KSA

Phase 1 of e-Invoice in KSA which is generation phase is already live in since December 1st, 2021. Zakat, Tax and Customs Authority (ZATCA) has mandated phase 2 which is integration phase from January 1st, 2023, in waves. Taxpayers under first wave are already notified by ZATCA to comply with phase 2 requirements.

In integration phase taxpayers e-Invoice generation solution (EGS) must be integrated with ZATCA through APIs and various security requirements like CSR generation, cryptographic stamping for simplified tax invoice (B2C), hash generation, hash chaining, QR code generation, invoice in PDF/A-3 format and e-Archiving of invoices.

Phase 2 requirements are generally by default not available in ERP or Accounting Systems and requires considerable amount of time for implementation and maintenance. So, it is advisable to go with third party SaaS based e-Invoice service providers to comply with ZATCA requirements. Taxilla offers e-Invoicing solution in KSA which is ZATCA compliant and has following advantages when compared to developing in house solution or using extensions provided by ERP or accounting system.

Reduced Implementation and Maintenance Cost:
In house development of e-Invoicing solution requires considerable resource diversion and the entire development and testing may take considerable time and effort. If you have multiple ERPs or accounting systems, then the efforts will be multiplied for each system. Taxilla’s e-Invoice solution is fully ready with ZATCA mandated requirements, and it requires only 5-7 working days to integrate with our solution and become compliant.

All of the above will help you manage the process better and ensure that you take advantage of all credits available at your disposal, and avoid delays in your payment cycle.

In house development involves higher upfront cost. Purchasing extensions provided by ERP or accounting software involves high licensing costs. With Taxilla’s EGS the initial investment will drastically come down and you pay as you use the system.

Minimum impact on the source system:
ZATCA requires e-Invoice XML to be generated as per UBL 2.1 semantics. Generating ZATCA mandated XML within ERP or accounting system will have huge impact of the existing data structure. Also when taxpayer need to generate high volume of invoices it will have huge performance impact on the business system. Taxilla’s EGS accepts data in source friendly format and operates on ELT model where data is first loaded to Taxilla system and then transformed to ZATCA mandated XML.

Easy to integrate with multiple source systems:
Taxilla’s EGS supports various integration options like API and sFTP. It also supports file upload and manual entry options. Data can be aggregated or segregated from different sources based on the business requirement and generate e-Invoice accordingly.

Zero Non-Compliant Risk:
e-Invoicing regulations are bound to change frequently, and your solutions needs to be updated with the latest changes on time to stay compliant. Taxilla’s low code platform ensures rapid change management by effortlessly updating the solution and keeping it compliant with minimum additional costs.

Zero Non-Compliant Risk:
e-Invoicing regulations are bound to change frequently, and your solutions needs to be updated with the latest changes on time to stay compliant. Taxilla’s low code platform ensures rapid change management by effortlessly updating the solution and keeping it compliant with minimum additional costs.

Advanced Data Qualification:
ZATCA will validate e-Invoice against 100+ validations. Submitting e-invoice without making sure it is compliant will lead to rejection of e-Invoice. As taxpayer cannot edit e-Invoice once it is submitted to ZATCA, it will lead to high operational cost and process inefficiency. Taxilla’s rules engine pre-validates the e-Invoice data with numerous rules mandated by ZATCA and avoid risk of submitting invalid e-Invoice.

Arabic Language Support:
Most global ERPs and accounting software does not support Arabic language but ZATCA mandates to display Arabic content on the invoice. Taxilla’s EGS support Arabic language both on invoice PDF and application.

Scalable and Extensible:
Taxilla’s EGS is automatically scalable both horizontally and vertically as your business grows. It comes with built in extensibility to support new business line or source system with minimum efforts. Taxilla supports multi-tenant model where each tenant can act as EGS which will help taxpayer to easily maintain different hash chains based on the business need. Configurations provided by Taxilla EGS ensures smooth migration from Phase 1 to Phase 2.

Intelligent Dashboarding:
Unlike traditional ERP systems, Taxilla’s EGS provides dashboard with actionable insights from regulatory data.

Source @ https://www.taxilla.com/Why-third-party-SaaS-application-for-e-Invoicing-in-KSA