E-Invoicing Developments in the Middle East

The Middle East, known for its rich history, diverse culture, and thriving economies, is rapidly embracing technological innovations that are reshaping various sectors. One significant transformation is occurring in the field of finance, particularly with the adoption of electronic invoicing, or e-Invoicing. This digital revolution in invoicing is streamlining business processes, enhancing transparency, and promoting economic growth throughout the region.

A Beginning Of A New Era ??

The Gulf Cooperation Countries (GCC) have outlined a number of methods to modernize their financial systems to the digital age. One of these is the use of an electronic invoice and receipt (e-Invoice and e-Receipt) system to reduce tax evasion and boost organizational efficiency. The Kingdom of Saudi Arabia (KSA) is the leader in this area and has served as a model for similar initiatives in other GCC nations.

Several Middle Eastern countries are moving towards mandatory e-invoicing??:

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1.Bahrain is one step closer to implementing e-invoicing ????

• The tax authority from the Kingdom of Bahrain, the National Bureau for Revenue, has released RFP (“Request for Proposal”) titled “E-invoicing central platform and maintenance”.
• According to the RFP,the central platform would be a system that receives and validates?e-invoicing?data from the Integrated e-Invoicing solutions adopted by the businesses.
• It is expected that?e-Invoicing will be implemented in Bahrain in the last part of 2024.
• Bahrain's National Bureau of Revenue has published an RFP titled "E-invoicing central platform and maintenance" in order to create a unified e-invoicing ecosystem in the country.
• The NBR's goal is to encourage businesses to develop compliant e-invoicing solutions, generate e-Invoices in a standardized format, and securely communicate data with the NBR.
• This move brings Bahrain closer to implementing an electronic invoicing obligation soon.

2.Egypt – Full implementation is expected to be completed by 2024????

• Egypt is moving towards mandatory e-invoicing as part of its Vision plan. The obligation stages are divided into different phases announced on various dates.
• The first phase, covering 134 companies, began in November 2020,followed by phase 2 in February 2021, covering 350 companies.
• Phase 3 in 2021 has required all remaining companies to enroll in the Large Taxpayers Centre.
• Phase 4 has made e-Invoicing mandatory for all public sector entities back in July 2021.
• Phase 5 and 6 have begun in February 2022, followed by phase 7 in June 2022 for certain taxpayers.
• By July 2023, all taxpayers have been requested to enroll for e-invoicing and register with the tax authority.
• Taxpayers must submit their e-invoices in XML or JSON format to the official e-invoicing portal, ETA, with a digital signature and archive period of seven years.
• Full implementation is expected to be completed by 2024.

3.Oman: E-Invoicing may be launched in April 2024, with mandatory implementation as of October 1, 2024????

• Oman is planning to deploy e-invoicing in a phased approach.
• A voluntary launch period is planned between April and September 2024, followed by the mandatory implementation of e-invoicing starting from October 2024.

4.Saudi Arabia: 8 waves already announced, with the criteria of the 8th wave recently announced????

• All taxpayers in Saudi Arabia must integrate into the ZATCA platform and send e-invoices in a defined structured format, following legal e-archiving requirements.
• Electronic invoices must be generated and stored in structured data files, and paper or handwritten invoices, PDF images, or scan copies of images are not considered e-invoices.

The 8 waves already announced, with the criteria of the 8th wave recently announced.

??Wave 1:?taxpayers with an annual turnover of over?SAR 3 billion?are obliged from?January 2023.

??Wave 2:?tax resident businesses?with a turnover of over?SAR 500 million?will be mandatory from?July 2023.

??Wave 3:?taxpayers with an annual income of over?SAR 250 million?will be liable from?October 2023.

??Wave 4:?taxpayers with annual income between?SAR 150 million?and?SAR 250 million?will be liable from?November 2023.

??Wave 5:?From?December 2023?is subject to all taxpayers whose VAT income for?2021-2022?exceeds?SAR 100 million.

??Wave 6:?From?January 2024,?all taxpayers whose VATable income in?2021-2022?exceeds?SAR 70 million?will be obliged to issue e-Invoices.

??Wave 7:?From?February 2024,?all taxpayers whose income subject to value added tax in?2021 or 2022?exceeds?SAR 50 million.

??Wave 8:? From March 2024, all taxpayers whose VATable income exceeds?SAR 40 million?in?2021 or 2022.

5.United Arab Emirates – Plans have been published for mandatory B2B E-Invoicing in 2 phases (July 2025 and July 2026)????

• The UAE government recently approved the use of e-Invoices for transactions between counter-parties. The e-Invoicing project is being developed by the Ministry of Financy.
• The first phase will begin in July 2025.
• The UAE is expected to follow the Saudi Arabian model, which is based on the phased implementation of e-Invoicing for businesses of different sizes.

In Closing????: As this dynamic region continues to evolve, the adoption of e-Invoicing will undoubtedly play a pivotal role in its economic development and global competitiveness, marking a significant step towards a more connected and efficient future.

For deeper insights and support in navigating the Global e-Invoicing?universe , our expert team stands ready to assist, guiding each step with strategic, data-driven counsel.?

Taxera Technologies one Platform, Seamless Global Tax Compliance.

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