Saudi Arabia E-Invoicing- NetSuite Integration for ZATCA Requirements

As businesses continue to expand and grow internationally, it is more important than ever to have a system to manage the various tax and custom regulations and requirements for each country of operation. NetSuite provides a variety of localization SuiteApps and integrations, with one of its latest being the Saudi Arabia E-Invoicing SuiteApp. This SuiteApp helps keep companies stay compliant with ZATCA requirements.

Why Implement Saudi E-Invoicing within NetSuite?

Zakat, Tax and Customs Authority (ZACTA) is the regulating tax authority for the Kingdom of Saudi Arabia. The first phase of ZACTA was introduced in December of 2021 with the goal of helping businesses digitalize and streamline the process of filing and storing invoices digitally. The second phase, rolled out in January of 2023, mandates businesses to have a system that will integrate directly to the ZATCA portal to verify and validate each e-invoice.

NetSuite’s new Saudi Arabia E-Invoice SuiteApp will allow existing NetSuite users registered with the Saudi tax portal to download the SuiteApp. The SuiteApp is certified and approved by ZATCA and require no additional authorization. The app will also allow users to comply with all ZATCA regulations from the phase 1 and 2 rollouts. The SuiteApp will integrate directly with the Fatoora E-Invoice platform, allowing business to automate the mandated ZATCA filing with each invoice and credit memo created in NetSuite.

Image 1: NetSuite Invoice with ZATCA Requirements                           

Saudi Arabia E-Invoicing App Overview and Features

The Saudi Arabia E-Invoicing app contains a variety of features that will help businesses operating in Saudi Arabia remain compliant with Saudi laws and regulations. Here are some of the highlights that are included in the app:

• Integration between Saudi business and Fatoora meeting ZATCA regulations.
• Streamlined process of sending invoices and credit memos to B2B and B2C customers while meeting ZATCA requirements.
• Automatically stores invoices with ZATCA and within the NetSuite environment.
• Preapproved ZATCA platform meeting security and functionality requirements – requires no further approval from Saudi government.
• Reduces compliance approval timeline and invoice cycle times.
• Invoices can be stored in XML and PDF formats for all customer types within the NetSuite Environment.

Image 2: ZATCA E-Invoice Document Storage in Invoice Record

Prerequisites and Key Considerations

To use the Saudi Arabia E-Invoicing SuiteApp, there are a few prerequisites that must be followed. First, businesses must be registered with the Saudi Arabian Tax Portal and have a valid and active VAT registration number. After registering, you must complete the required form stating your company does e-invoicing to obtain the required CSR, Private Key, and Compliance Binary Security Token that will be used to connect your NetSuite account to ZATCA. This SuiteApp also requires four additional SuiteApps to be installed for the Saudi Arabian E-Invoice SuiteApp to be functional. These SuiteApps are the Electronic Invoicing Bundle, Localization Assistant, NetSuite Country-Specific Address Forms, and NetSuite SuiteApps License Client. After completing these prerequisites, you will be able to complete the compliance checks and start using the SuiteApp.

Additionally, a few other considerations to keep in mind include:

• NetSuite Roles: The SuiteApp defaults to two roles that have permission to configure the SuiteApp, accounts, and records. Additional roles can be granted access if required.
• Dashboard Portlet: The SuiteApp includes a customized portlet displaying numerous E-Invoices and their status which can be added to the users’ homepage.
• NetSuite Scripts: Scripts can be generated that will allow users to generate multiple e-documents at once or schedule times to batch invoices and send to ZATCA at a defined time.

Summary

The new Saudi Arabia E-Invoice SuiteApp is an easy-to-use integration that allows businesses operating in Saudi Arabia to comply with ZATCA requirements and regulations. This app allows for a streamline approval process with increased visibility that will allow businesses to efficiently process e-invoices and store them in an approved, centralized location.

To learn more about how RSM can help you get started in the ERP and integrate NetSuite with the Saudi Arabia E-Invoice SuiteApp, please contact our team!

Emma Hudson

Emma Hudson, an associate at RSM's NetSuite Practice, has led a variety of Industrials sector clients to optimize their NetSuite ERP systems for sustained growth, involving full life cycle implementations, assessments, and optimizations. Prior to joining RSM, she gained experience in logistics and workflow management within the oil and gas industry, as well as managing the pick, pack, ship process in a fulfillment center.