ZATCA E-Invoicing is typically a manual and time-consuming process, but with Empaxis, Saudi wealth and asset managers can automate these steps.
The Zakat, Tax and Customs Authority (ZATCA) requires all taxpayers in Saudi Arabia to comply with e-invoicing guidelines. Failure to comply may result in a fine as high as SAR 50,000 (~US $13,333).
Of course, the now-required electronic submission of ZATCA invoices will lead to a more modernized and efficient approach for the Saudi government in monitoring and reviewing Value Added Tax (VAT) transactions.
But at the same time, ZATCA e-invoice processing still takes a lot of time, money, and effort.
Consider all these requirements:
On top of that, increased invoice volumes take up more time and make it harder to scale processes.
Educating staff about these invoicing policies and protocols adds to the complexity.
For wealth and asset managers in Saudi Arabia, they face a lot of these ZATCA e-invoicing challenges when handling advisory and transaction fees.
Manual and time-consuming as the work is, Saudi investment firms are thinking, “there has to be a better way.”
At Empaxis, we pride ourselves in delivering customized automation and outsourcing solutions for investment managers globally.
Customization is about identifying unique challenges to a specific country or firm type, then developing a reliable and long-term solution.
Through our work with prominent Saudi banks, wealth and asset managers, we closely observed the ZATCA e-invoice processes, and our Empaxis application development team successfully built an automated invoice solution.
In one specific use case, Empaxis developed a web-based application with SSRS report generation capability for a prominent Saudi asset manager with several billion US dollars AUM.
This application passes invoices details to the integration layer and generate the final invoice in PDF format.
Empaxis automated all these steps:
For this Saudi asset manager, the benefits of streamlined e-invoicing were apparent:
Filing taxes and complying with government regulations can be a challenge in any country. Saudi Arabia is no exception.
The good thing is a process like ZATCA e-invoicing can be automated, and Empaxis has the tools and resources to make it possible.
And when it comes to any manual and routine process, wealth and asset managers in Saudi Arabia should always think about how to leverage technology to do the work, allowing human efforts to focus on activities that bring increased valuable to the organization, like client servicing, gathering and investing assets.
All these automation- and technology- driven activities tie in with the broader goals of Saudi Vision 2030, and as we highlighted in our operations guide for Saudi investment managers, firms that embrace the change will benefit tremendously.