Many of you are not familiar with the knowledge about the e-invoice. Recently, the pandemic of Covid-19 has forcefully failed many businesses. The owners are ruminating over the strategies to gain back their lost business productivity.
What is Electronic Invoice?
First of all, you need to know the Electronic Invoice Definition. As you all know the traditional and old invoicing system is the well-known paper invoicing or PDF version. Now gone are the days to rely on this kind of invoices.
An Electronic Invoice is an invoice that is issued, generated, processed, and stored via specific document formats.
Such kind of an invoice is digital starting from the time of issuance till the time of archiving it. There is no chance of fraudulent activities if you are utilizing an Electronic Invoice System.
What is GAZT in Saudi Arabia?
GAZT also known as the General Authority of Zakat and Tax, is a governmental agency operational for the region of Saudi Arabia. This agency is accountable for the collection of Zakat and taxes including the VAT (Value Added Tax) applicable to the people residing in Saudi Arabia’s vicinity. It was first founded on June 14th, 1951 as a new department under the Ministry of Finance KSA.
What is ZATCA in Saudi Arabia?
ZATCA also known as Zakat and Tax Customs Authority, is formally replacing the name of GAZT but performing the same operational tasks. Its head office operating from the city of Riyadh and its First officer is Engr. Suhail Bin Mohammed Abanmi.
The Recent Announcement by GAZT/ZATCA in KSA:
GAZT has announced the E-Invoicing feature from December 2020. Do you know what does this announcement says while residing in Saudi Arabia?
Now that department of ZATCA is responsible for all the previous operations and accountability by GAZ, it declares that Electronic Invoice implementation is now mandatory for the small and large businesses in KSA. The deadline for the first phase of e-invoicing is December, 4th 2021. Since you have already arrived in the middle of 2021, as the first six months of 2021 have passed by, time is short now to implement the Electronic Invoice System.
The second phase’s deadline is although extended to January, 1st 2023 for the facility of all the businesses striving hard to adapt to this new and brilliantly progressive change in KSA.
What is the Real Objective of GAZT/ZATCA?
The real purpose of GAZT/ZATCA is to implement an honest and transparent system in KSA’s geographical boundaries that are free from any fraud or hacking activities. Such a system is strictly intended that is free of all types of errors and fraud. A 100% accurate tax-paying system by all the business owners including the Islamic payment of Zakat is ensured.
Another possible reason could be the arrival and spread of the pandemic in 2020. To improve the business profitability and save the country’s economy from drowning, Electronic Invoice Standard has to be maintained as per the regulations of GAZT/ZATCA.
Why GAZT/ZATCA Made this Decision?
The Electronic Invoice Benefits are the real reason that they have persuaded the department of GAZT/ZATCA strongly and dominatingly. There are amazingly various benefits some of which are listed below:
- Environmental friendly as least paper consumption
- Free from fraudulent activities
- Better supplier and customer relationships
- Honest system of zakat and tax payments
- Better productivity and profitability of businesses
- Easy tracking and monitoring of all invoices by GAZT/ZATCA.
What should be Your Objective?
While running a business in Saudi Arabia, you need to implement your business in compliance with the rules of GAZT/ZATCA.
So, what must be your objective for today 2021?
The answer is simply the portrayal of the skill of adaptation in 2021. Only those businesses can survive this turmoil of pandemic which can be more adaptable and flexible in approach while adopting the new technology of cloud-based software and that too with the implementation of the Electronic Invoice GAZT.
If you are rigid and non-flexible in your approach and adores the traditional business systems, you may easily fail in 2021. As a successful business owner who makes sure that his business is periodically updating with the latest technological demands. You must understand that adaptability is the quality and skill that will heighten your chances of true success in 2021.
A Valuable Suggestion:
If you are a (small/medium) business owner and feel stressed out about the latest announcement by GAZT/ZATCA, SMACC software is here to resolve your difficulties by providing you a great automated cloud-based software offering the feature of Electronic Invoice KSA. All you need is to stay calm and relax since the highly proficient developer team of SMACC ensures all necessary measurements for the implementation of e-invoicing before the first deadline of December, 4th 2021. Your business is now in safe hands and perfect compliance with the E-invoicing Regulations GAZT.
Hence it is the perfect time to make your business decision by choosing the SMACC software in 2021 for your fabulous business management.