HAL Vat Care Drives JCCI's Success in Zakat E-Invoicing Phase-II Compliance

HAL Vat Care Drives JCCI's Success in Zakat E-Invoicing Phase-II Compliance

Published By

Issam
E-Invoicing
Feb 27, 2024

In recent years, Saudi Arabia has placed greater emphasis on digitizing its economy. As part of this effort, the nation's tax authority, previously known as the General Authority of Zakat and Tax (GAZT), merged with customs to form the Zakat, Tax and Customs Authority (ZATCA). In September 2020, ZATCA published a proposed amendment to value-added tax regulations that would establish electronic invoicing requirements in Saudi Arabia. 

Under this guideline, starting Nov 2021, the Phase I of e-invoicing came into effect. This mandated all businesses to have only digital Invoice with a relevant QR code. However, this guideline became more stringent with the requirements under Phase II - which began on Jan 01, 2023. The roll out started taking place in phases and clearly stated that impacted businesses must integrate their ERP or point-of-sale systems with the Fatoora portal, the national e-invoicing platform, in phases depending on their wave eligibility.

We at HAL Vat Care are thrilled to have partnered with the Jeddah Chamber of Commerce on their E-Invoicing Phase II journey. Guiding a pillar of Saudi industry into the digital age has been incredibly rewarding. Of course, change brings growing pains. Migrating long-standing financial systems and adapting workflows is complex for any institution. However, together we patiently tackled each hurdle as it arose.

Challenges and Solutions:
1. Legal Compliance and Security:

HAL Vat Care meticulously addressed JCCI's need for the highest standards of security and local data compliance. The solution implemented Ensured the safeguarding of sensitive data throughout the compliance journey, meeting stringent government regulatory demands.

2. Large Internal Team Across Regions:

JCCI's extensive IT team across diverse regions demanded a scalable solution for immediate deployment and future scalability. HAL's solution consultants worked closely with the IT team of JCCI and delivered a flexible solution, enabling JCCI to swiftly meet compliance requirements while laying the groundwork for sustained success.

3. Version Control and Database Integration:

HAL Vat Care overcame challenges related to version controls and seamlessly integrated with JCCI's existing database. The team of expert solution architects at HAL orchestrated a technical architecture capable of handling all the complex scenarios, ensuring a smooth transition to ZATCA Phase-II requirements.

Implementation Process:

Connecting JCCI's Oracle EBS system to HAL Vat Care's Middleware system via a universal API bridge was the crux of the solution implementation. VAT Care efficiently integrated with the Fatoora portal, managing cryptographic stamp generation, XML hash creation, and QR code compliance. Overcoming challenges with an older database version, HAL created a staging database, maintaining version control while securely connecting external systems.

To understand this process in detail, Download the case study

Success Metrics:
1. >300% ROI:

JCCI's decision to leverage HAL Vat Care's expertise resulted in significant savings of IT talent resources. Efficient collaboration with HAL's consultants exceeded project ROI expectations, allowing JCCI's internal teams to focus on core business functions.

2. Perfect Bridge Solution:

HAL Vat Care provided a seamless integration solution, effortlessly connecting JCCI's existing ERP systems with VAT Care. The tailored architecture efficiently addressed challenges, ensuring smooth integration of older database versions with the Fatoora portal.

3. Local Expertise:

HAL's team, based in Saudi Arabia, enabled smooth communication through local presence. Proactive problem-solving and effective teamwork facilitated rapid project deployment, showcasing HAL Vat Care's commitment to understanding and addressing local nuances.

The way forward:

HAL Vat Care emerged as JCCI's ideal partner, navigating the complexities of E-Invoicing Phase-II compliance with finesse. This collaboration not only ensured immediate compliance but also laid the groundwork for a resilient and future-ready IT infrastructure. HAL Vat Care's expertise positioned JCCI for sustained success in the dynamic landscape of government regulations and IT demands, marking the beginning of a lasting partnership.