E-invoicing is considered a revolutionary step in the world of business. It enables the companies to improve the financial transactions efficiency and provide their clients with seamless experience. In conjunction with developing this system in KSA, Phase Two e-invoicing is rolled out to complete the efforts being made to standardize and simplify the invoicing system. This phase aims to provide financial transactions with a higher level of security and transparency. In this article, we will tackle in detail the importance of such Phase Two e- invoicing, and how Qoyod is considered the best solution for this phase.
What is Phase Two E-Invoicing?
Phase Two e-invoicing is the step that follows the completion of the Phase One which focused on issuing e-invoices. Phase Two focuses on invoice digital signature to ensure reliability and veracity. This phase requires better integration between financial systems and adding authorized electronic signature. This phase aims to make the electronic invoices a part of the daily transactions and improve the invoice efficiency through the use of encryption technologies and digital verification.
Importance of Phase Two E-Invoicing with Qoyod.
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Improving Efficiency and Reducing Costs.
Phase Two helps in speeding up issuing and handling invoices. Upon getting rid of the traditional paper invoices and shifting to the digital system, companies can save much cost related to invoice printing, shipping and storage. The e-invoices contribute to reducing the time and efforts required to run these processes.
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Improving Data Accuracy.
Phase Two e-invoicing depends on software systems that enter data automatically, reducing potential human errors. As a result, the companies can issue accurate invoices including all correct details, which reduces the problems related to collection or error correction after issuance.
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Reducing Shadow Transactions.
Through e-invoicing, it is difficult to find invoices fraud or tax evasion. All financial data of the entity is registered and documented in tax invoices that helps the legislative authority to follow up on the financial transactions and reduce the tax evasion, in addition to monitoring the entity’s financial movements.
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Facilitating Editing and Reviewing.
The e-invoicing allows for quick access to data and enables accountants and the concerned authorities to review the invoices easily. Through advanced search systems, companies can follow up on and verify all invoices, and make financial analyses easily which helps improve the tax compliance.
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Sustainability
Phase Two e-invoicing contributes to reducing paper use and converting all invoices into digital data. This helps the entity access information quickly and get reports accurately which leads to make decisions more closely and faster. All these components help the company with sustainability and governance of its accounting processes.
Requirements for Phase Two E-invoicing in KSA:
Phase Two e-invoicing in KSA involves many requirements that have to be met by the companies to ensure full compliance, such as:
- Full electronic connection: the companies should ensure that all the invoices are electronically connected with ZATCA’s portal.
- Criteria compliance: all invoices should meet legal and technical standards specified by the Authority.
- Electronic documentation: all invoices should be documented electronically to ensure verification and credibility and to be accessed as needed.
Requirements for Phase Two E-Invoicing:
- Integration with systems
- Electronic verification
- Data documentation
Requirements for Phase Two E-Invoicing:
To ensure full compliance in Phase Two, tax invoice will meet the following requirements:
- Integration with systems: the invoices should be electronically connected with ZATCA’s Portal directly.
- Electronic verification: all invoices must be verified electronically to ensure that there are no errors or fraud.
- Data documentation: all invoice-related information should be documented to ensure transaction transparency and credibility.
Role of ZATCA’s Fatoora Portal:
ZATCA’s Fatoora Portal plays a pivotal role in carrying out Phase Two e-invoicing through:
- Facilitating the electronic connection: Facilitating the electronic connection between the different systems to ensure the simple electronic integration.
- Monitoring the compliance: Monitoring the companies’ compliance with the requirements and the required technical standards periodically.
- Providing technical support: Providing companies with the technical support to ensure rolling out the system correctly and efficiently.
Qoyod Advantages:
Optimum software to support Phase Two e-invoicing.
- Full compliance with requirements.
- Integration with other systems.
- Security and protection.
Qoyod: Optimum Software to Support Phase Two E-Invoicing.
QOYOD is one of the most effective solutions to support Phase Two e-invoicing. The software provides a number of advantages; including ease of use, compliance with legal requirements, accurate issuance of invoices and integration with other systems such as inventory and customer relationship management systems.
Qoyod Advantages:
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Full compliance with requirements.
Qoyod provides the full compliance with the requirements of Phase Two e-invoicing as to the digital signature, encryption and digital certificates.
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Integration with other systems.
Qoyod supports integration with several accounting systems, and, hence, making invoices management and integration with other financial processes easier.
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Security and protection.
Qoyod has high levels of security, including encryption and data protection, what ensures protecting the sensitive financial information.
Wide-scale Definition of E-Invoice:
The e-invoice is a digital document issued and documented electronically and has the same legal value of the paper invoice. It depends on advanced technologies such as the electronic signature and encryption to ensure data verification and security. The e-invoice helps the companies manage the invoices easily and follow up the payments accurately. It contributes to reducing the errors related to manual entry technique and provides a digital interface that allows access to information easily at any time. The e-invoice is an important step towards the digitization and improving work efficiency at entities.
What is the Difference between Phases One and Two?
Phase One e-invoicing focuses on issuing and saving invoices in a digital format without need to use paper which enhances accessing invoices easily and saving them regularly. Phase Two adds a new feature which is the connection and integration with the ZATCA’s Portal. It became necessary to submit invoices to government system instantly. Furthermore, it requires using the electronic signature and digital certificates to provide more security and legal compliance, enhancing transparency of the financial processes and reducing tax evasion.
E-Invoice’s Role in Improving Tax Compliance:
The e-invoice helps companies comply better with tax laws through documenting all the financial transactions electronically and submitting them to ZATCA instantly. Thus, it reduces potential tax evasion as government authorities can monitor money transactions directly and accurately. The e-invoice allows issuing quick and accurate reports. Thus, companies can prepare tax returns correctly on time. In addition, by using e-invoice, companies ensure full compliance with tax-related international and local laws.
E-Invoice Activation.
After completion of registration process, you can, with Qoyod, create trial e-invoices to know how to do that and get experience. When you need to shift from paper system to electronic system in accordance with ZATCA’s standards, you must activate e-invoice using Qoyod. All what you need to do is to go to settings, then click “Activation” beside the term of e-invoice activation according to Saudi regulations, and, finally, click “save” to save changes.
Effective 1st of December 2021, entities cannot deactivate the e-invoice after successful activation using Qoyod. So, it is preferable to have enough time to use the system, try to generate invoices and understand all system aspects before activation. Hence, you can activate the system after a comprehensive worry-free trial, that ensures full compliance with e-invoice requirements.
Conclusion:
Phase Two e-invoicing is an important step towards improving the financial efficiency of companies and increasing security in business dealings. The solutions provided by Qoyod enable companies to shift easily to this developed system and comply with legal requirements easily. If you search for a way to improve your invoices management and make your financial process more efficient, Qoyod will be the best solution for you.
About Qoyod:
Qoyod is the best and easiest cloud accounting system. It is secure, easy and does not need to be downloaded as the user can use it via any smart device with access to internet. This system is authorized by the Zakat, Tax and Customs Authority for its two phases.
Start your free trial now for 14 days to discover how this system can make a leap in your business management.
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