Electronic invoice systems in other countries: Colombia, Saudi Arabia and Egypt

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In addition to Europe, digital invoicing systems are also being introduced in other regions of the world. What solutions have been adopted by countries leading digitization in South America, the Middle East and Africa?   

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The goal of e-invoicing systems around the world is to improve tax collection and standardize the standard of accounting documents used by businesses. Depending on the country and its local conditions, these tasks are carried out in different ways. How do countries as exotic to us as Colombia, Saudi Arabia or Egypt handle them?

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Colombia

Latin America is a global leader in the design and implementation of digital invoicing systems. In Colombia, electronic invoicing is mandatory for all taxpayers as early as 2019. A year later, real-time invoices were made mandatory there to be sent to the tax administration, and between 2021 and 2022, payroll documents and purchase confirmations were also digitized. Colombia's e-invoicing system is based on the following assumptions:

• the documents must be issued in XML format (UBL 2.1) and bear an electronic signature

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• each invoice has a unique code, generated with the help of the Technical Key (Clave Técnica) granted by the tax administration

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• after issuing an invoice, the buyer must send the issuer an acknowledgment of receipt or inform him of its rejection        

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Saudi Arabia 

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The country has the most advanced e-invoicing systems in the Gulf region. It introduced VAT in 2018, and the authorities issued a regulation on e-invoicing, under which a two-stage implementation of the digital tax system began:

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• As of December 1, 2021, all taxpayers have been required to generate and archive invoices, credit and debit notes electronically 

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• starting January 1, 2023, taxpayers must additionally send invoices to the national system created by the Tax and Customs Administration (ZATCA)

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In the first phase of the program, entrepreneurs were free to choose the format of accounting documents. They could be files generated by the software used in the companies or, for example, PDF documents, and the only requirement was that the invoices contain all the data stipulated by tax regulations. The only exception was for B2C transactions, where the entrepreneur additionally had to provide the buyer with a paper invoice.  

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The second phase of the project already requires taxpayers to use invoices only in XML (UBL 2.1) or PDF/A-3 format with embedded XML data. For B2B transactions, documents are uploaded to the government portal in real time, while B2C invoices must be delivered to the treasury within 24 hours of issuance. The e-invoicing obligation is being phased in in accordance with the aforementioned rules, with taxpayers subject to it being notified six months in advance. 

Egypt 

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E-invoicing systems are also gaining popularity in African countries. Since November 2020, work on its own solutions has been carried out in Egypt, where the obligation to issue electronic invoices is being introduced gradually. In 2020, the country's 100 largest companies were covered, and in September 2021 they were joined by 3,000 smaller companies. There is also an option for entities that meet the technical requirements to voluntarily join the system. What are the characteristics of Egypt's e-invoicing model?

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• once registered in the system, the taxpayer receives the necessary technical documentation and access to software tools from the fiscal

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• before starting e-invoicing, companies must acquire an electronic signature certificate themselves, the issuer of which can be one of the country's two licensed offices

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• to sign invoices, it is also required to have a HSM (Hardware Security Module). 

• invoices are issued in JSON or XML formats and must have the aforementioned electronic signature and the official code corresponding to the specific good or service

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• B2B and B2G invoices, as well as credit and debit notes are digitized 

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• before being sent to the customer, e-invoices must be transmitted in real time to the tax administration authorities

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For additional information on e-invoicing systems in various countries around the world, see the report SOVOS Trends 13th Edition 2022.  

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Want to know more about the Polish e-invoicing model? Our experts have created a vademecum for entrepreneurs preparing for the introduction of the new system, in which you will find answers to the most frequently asked questions about KSeF.      

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