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As one of the Kingdom’s grand digital transformation initiatives, e-invoicing in Saudi Arabia has become a requirement for all VAT registered businesses. In order to be in accordance with the Zakat, Tax and Customs Authority (ZATCA) requirements, all the companies using ERP or POS systems should be able to device Registration in time and correctly. This important step allows for secure integration of invoicing systems with ZATCA’s digital platform thus traceability and real time reporting. Whether you are operating a small business or a big corporation, it is important to prepare for Phase 2 of the e-invoicing rollout to avoid penalties and smooth out your tax compliance process.
The need for e-invoicing in Riyadh, and in all the regions of the Kingdom, applies to the resident taxpayers and is intended to eliminate the tax evasion and modernise the business operations. ZATCA, formerly GAZT, introduced e-invoicing in two phases. Phase 1 started on December 4, 2021, with the issuance of generating and storing electronic invoices. Phase 2 has been launched for businesses with annual revenues above SAR 3 billion in 2021, and it will come into play on 1st January 2023. Device Registration in KSA is an integral element of this second phase which validates and correlates your invoicing devices with ZATCA’s systems.
Device registration in KSA e-invoicing is the process of onboarding your e-Invoice Generating Solution (EGS) units such as ERP systems, Point of Sale (PoS) machines or Online Cash Registers (OCR) to the ZATCA Fatoora portal. At this stage, it confirms and certifies all devices that issue electronic bills, which are compliant with ZATCA rules. It is necessary to register these devices to enable secure communication with the authority’s platform, issuance of signed invoices and real-time accurate reporting under the e-invoicing system in Saudi Arabia.
To complete device registration on the Fatoora portal successfully, businesses need to meet a few necessary prerequisites. Such include access to the Taxation Portal, stable internet connectivity and ZATCA compliant e-invoicing solution. Other than that, technical readiness such as API integration capabilities, and the installation of ZATCA’s Software Development Kit (SDK) in the source system is necessary.
Prerequisites for Device Registration:
To initiate the Device Registration process log in to the ZATCA Fatoora portal using your valid credentials. This portal is the entry point for all e-invoicing in Saudi Arabia and businesses can register their ERP or POS devices safely through this portal. Correct access to this portal is the starting point of your compliance under ZATCA mandate.
Upon logging in, enter the amount of devices you plan on onboarding. For every device, the system will produce a different One-Time Password (OTP) code. This is a key process in the Device Registration in KSA because it will authenticate each ERP or POS device individually thus secure identification and traceability.
Following the request, the Fatoora portal immediately shows the OTP codes. These codes are like transitional keys which are used to link and confirm each device. To be able to do a successful Device Registration, ensure that you jot down these codes carefully as well ensure that the devices are ready to receive them within the given time frame.
Enter each OTP into the applicable ERP or POS system within one hour of generation to continue with Device Registration. This step is time consuming and automation can help to have accuracy and speed. It is enough to confirm that the devices that are being registered are correctly mapped and authorised to issue e-invoices in e-invoicing in Riyadh or any other Saudi region.
After entering the OTP, the device will produce a Certificate Signing Request (CSR). This is done by generating a private key using the ECDSA 256 algorithm, this gives a privatekey.pem file. This cryptographic process is a mandatory technical step to move forward with Device Registration in KSA and guarantees authenticity of data.
After the CSR, the device tries to connect to the Fatoora portal in search of a Cryptographic Stamp Identifier (CSID). This identifier makes the device stick to your business’s tax profile. It is a fundamental process in Device Registration because this permits ZATCA to label your devices in Saudi Arabia uniquely under the e-invoicing system.
Once the CSID is received, the device should send sample e-invoices to ZATCA. These are checked for compliance, format accuracy and cryptographic validity. This validation step is important to the Device Registration, which verifies that your ERP or POS system follows all standards necessary for legally issuing e-invoices.
After your devices pass the compliance checks, ZATCA issues a Production Cryptographic Stamp Identifier (PCSID). This is the successful end of Device Registration. Your ERP or POS system is now officially certified to issue and submit e-invoices fully conforming with ZATCA regulations in KSA.
Businesses need to comply with ZATCA’s regulations to successfully complete Device Registration for e-invoicing in Saudi Arabia. Following the specified steps such as accessing Fatoora portal, getting OTP codes and submitting sample invoices, companies can be sure that their ERP or POS devices are onboarded in a secure way. This process is not only a technical requirement; it’s an important step towards full digitization of invoicing operations, to enhance transparency and efficiency in the tax system of the Kingdom, particularly for businesses in major cities like Riyadh.
The Device Registration procedure for e-invoicing in KSA might sound complicated, but with adequate preparation and explanation, businesses can easily go through it. Through a ZATCA compliant e-invoicing solution, companies will have streamlined operations, reduced errors and improved on tax compliance. Making sure that every device is registered and authorized to be used in the e-invoicing system will help businesses to remain on the correct side of Saudi Arabia’s tax laws whilst playing their part in the wider digital transformation of the Kingdom’s economy.
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