Streamlining KSA Invoicing Process with ZATCA Onboarding

Streamlining KSA Invoicing Process with ZATCA Onboarding

Table of Contents

1. Introduction
2. Onboarding Process in Saudi Arabia
   • Prerequisites
   • Onboarding Steps
   • Compliance Check
   • Obtain Exit
3. Configuring Electronic Invoicing Features
4. Reviewing Cryptographic Stamp Identifiers (CSIDs)
5. Conclusion

Introduction

In Saudi Arabia, onboarding is mandatory for all taxpayers who are subject to electronic invoicing. The onboarding process is essential as taxpayers need to obtain cryptographic stamp identifiers (CSIDs). These CSIDs are required for integration with the electronic invoicing portal managed by the Saudi Arabian tax authority, ZATCA, and for the submission of electronic invoices. This article will guide you on how to onboard taxpayers and their electronic invoicing software with the Saudi Arabian tax authorities.

Onboarding Process in Saudi Arabia

Prerequisites

Before starting the onboarding process, certain prerequisites must be met. The legal entity must be registered as a taxpayer in Saudi Arabia and have a valid Value-Added Tax (VAT) registration number. Additionally, the legal entity must have access to the Saudi Arabian taxation portal, ERAD.

Onboarding Steps

The onboarding process consists of two steps:

1. Obtain a Compliance CSID (XID): ZATCA assigns a compliance CSID (XID) to perform compliance checks of electronic invoice generation solutions (EXES).

2. Obtain a Production CSID (SIT): SATYA assigns a production CSID (SIT) to compliant exits.

To obtain an EXID, follow the below steps:

1. Go to the onboarding and management portal in the Saudi Arabian taxation portal (ERAD).
2. On the main landing page of the onboarding and management portal, select the "Onboard New Solution Unit/Device" tile and then select "Generate OTP Code."
3. Select the number of One-Time Password (OTP) codes to generate, based on the number of e-invoicing generation units/devices that will be used.
4. Save the generated OTP codes for later use.
5. Prepare a configuration file for the Certificate Signing Request (CSR) and save it to the same location as the onboarding.
6. In the configuration file, update the email address value and other specific data.
7. Run the provided onboarding code, specifying the OTP and configuration file as input parameters. The password parameter is optional.
8. Save the received certificate file (.pfx) as XID.pfx in the system key vault certificate, and save the secret for the exit as CSID_Secret.txt in the system key vault secret. Refer to customer certificates and secrets for more information.
9. Configure the required features in the Saudi Arabian electronic invoice (SA e-invoicing) feature and reference the XID certificate saved in the key vault. This certificate will be used for communication with the ZATCA electronic invoicing portal.

Compliance Check

After obtaining the compliance CSID, ZATCA requires you to complete certain compliance checks by submitting sample invoices. This step is a prerequisite for requesting a production CSID. Make sure all types of sample invoices configured in the CSR configuration file are successfully submitted to ZATCA. Use the standard process for issuing electronic invoices and follow the country's specific configuration steps using the obtained compliance CSID.

Obtain Exit

To obtain an exit, you need to correctly configure the solution for electronic invoice generation and submission. Ensure that all electronic invoices are successfully submitted to ZATCA. Follow the provided onboarding code and specify the exit as an input parameter. Remember, the password parameter is optional. Save the received certificate file in PFX format as SIT.pfx in the key vault. Configure the relevant features in the Saudi Arabian electronic invoice (SA e-invoicing) with the obtained SIT certificate saved in the key vault.

Configuring Electronic Invoicing Features

Once all the configuration steps are completed, the system is ready to be used in production mode. Configure the related features in the Saudi Arabian electronic invoice (SA e-invoicing) feature. Replace the previously configured SIT certificate with the obtained SIT certificate saved in the key vault. This ensures seamless communication with the ZATCA electronic invoicing portal.

Reviewing Cryptographic Stamp Identifiers (CSIDs)

To review the obtained CSIDs on the ZATCA side, use the "Review Existing Cryptographic Stamp Identifier (CSID)" tile on the landing page of the onboarding and management portal. This portal can be accessed from the main Saudi Arabian taxation portal (ERAD).

Conclusion

Onboarding taxpayers and their electronic invoicing software with the Saudi Arabian tax authorities is a crucial process to ensure compliance. By following the steps outlined in this article, you can successfully complete the onboarding process, obtain the necessary CSIDs, and configure the electronic invoicing features. Remember to review the obtained CSIDs for a seamless invoicing experience.