Jeddah- Saudi Arabia’s Ministry of Commerce and Investment urged all companies and institutions to install electronic systems to run financial transactions and billings as an alternative to the traditional ways of settling and arranging bills.
The e-system would speed up processing bills and reduce costs, saving both time and effort.
The ministry, in a statement which Asharq Al-Awsat received a copy of, demanded that working sectors prepare their accounting departments for the installation of electronic billing.
The ministry pointed out that the measure awaiting implementation is a step towards a package of regulatory procedures which are part of a strategy adopted by the ministry.
Jeddah Chambers of Commerce’s Dr. Mohammed Dardir told Asharq Al-Awsat newspaper that electronic billing will also aid in monitoring financial activity of the private sector. The measure would help in calculating taxes on corporate income, for those considered liable for Zakat, an Islamic assessment.
Trade activity and financial statements will also be under enhanced supervision via e-billing.
Dr. Dardir said that the upgrade comes in light of the Kingdom’s vision for transformation “2030”.
Economic analysts explain that future e-billing will reduce both direct and indirect costs for institutions. The modernization of billing will also enhance accounting quality and precision, in addition to saving human resources which will then be tasked differently.
Billing is considered a crucial step in trade, marking the payments due between business partners. E-billing will further facilitate the process.
The ministry confirmed that all institutions, markets and retails in the Kingdom will use the Arabic language in printing all bills, price tags, advertisement, contracts and quotations—English will be used as an additional language.
The measure will serve the customer in receiving full knowledge on the product, service and purchase through two principal languages.