The E-invoicing mandate in Saudi Arabia, enforced by the Zakat and Tax Authority (ZATCA), requires businesses to electronically generate, transmit, and store invoices using ZATCA's standardized format. This mandate aims to enhance tax compliance, reduce fraud, and streamline invoicing processes.

Under the mandate, businesses must register with ZATCA and ensure that their e-invoicing systems comply with technical and regulatory requirements. They must generate invoices in the specified XML format and submit them through ZATCA's open, cloud-based network.

Compliance with this mandate is crucial, as failure to adhere to the regulations may result in penalties and fines. Businesses are also required to maintain electronic records of their invoices for a specified period, which can be audited by ZATCA.

The E-invoicing mandate is part of Saudi Arabia's broader efforts to modernize tax administration, enhance transparency, and create a more efficient business environment. It is essential for businesses operating in Saudi Arabia to stay informed about the specific requirements and deadlines to ensure seamless compliance with this e-invoicing regulation.