According to reports in the media today, the GST Council had recommended reducing the threshold for generation of e-invoices to Rs.5 Crore with effect from January 1, 2023, however the government has not implemented the recommendation.Taxpayers are
The Zakat, Tax, and Customs Authority (ZATCA) has recently published a notification in which it lays down criteria for the selection of establishments to be targeted for e-Invoicing in the Kingdom of Saudi Arabia as part of the fourth wave of the "Integration Phase".
In January 2022, Ministry of Finance announced that it will introduce federal Corporate tax (CT) on the net profits of businesses. The tax will become applicable either on 1 June 2023 or on 1 January 2024, depending on the financial year followed by the business. CT will be applied across all the emirates.
Zakat, Tax and Customs Authority (ZATCA) clarified that it has today initiated the procedures for implementing Phase Two (Integration Phase) of E-invoicing which aims to integrate E-invoicing solutions of taxpayers subject to the E-invoicing Regulation with ZATCA's platform (FATOORA), where ZATCA will inform and communicate with the targeted taxpayers to complete procedures for implementing Phase Two (Integration Phase) of E-invoicing.
Phase two of the e-invoicing mandate will be implemented from 1 January 2023. The taxpayer must integrate into the ZATCA (FATOORA) platform and send e-invoices in the defined structured format, requiring all e-invoices to be reported and cleared in real-time to ZATCA. All taxpayers subject to VAT are now required to send e-invoices with specific content in a structured format, and e-archive them in accordance with the regulations. This means suppliers can no longer generate or store paper or PDF invoices
The purpose of introducing the system is to ensure proper business managing which will easily enable all tax payers to run the business in a better way. Though it will feel initially little bit difficult, once the system started running, everyone will find its easiness of handling interesting. Moreover, the system will enable all the business firms run with common tax procedure maintain a proper pricing in the market.