E-Invoice in Hospital Industry
Overview
A hospital operating in Saudi Arabia must comply with ZATCA’s (Zakat, Tax, and Customs Authority) e-invoicing regulations, ensuring that all invoices are reported in a timely manner. The implementation of an e-invoice in hospital settings is crucial for both operational efficiency and legal compliance. The hospital handles both walk-in outpatients and inpatients, each with distinct invoicing workflows.
Scenario 1: Walk-in Outpatients (B2C Transactions)
Process Flow
1. Patient Consultation & Payment: A walk-in outpatient first pays the consultation fee before seeing the doctor.
2. Medical Consultation: The patient consults the doctor.
3. Medicine Purchase: If prescribed, the patient purchases medicines from the hospital’s pharmacy.
4. Invoice Generation & QR Code: Since this is a B2C transaction, the hospital generates a simplified e-invoice in hospital systems with a QR code at the time of sale.
5. Data Transmission to ZATCA: The hospital must transmit the invoice data to ZATCA within 24 hours of issuance.
Challenges & Compliance Requirements
Instant QR Code Generation: The hospital system must support real-time QR code generation to print it on invoices immediately.
API Support Issues: The system needs to be capable of integrating with ZATCA’s APIs to ensure smooth invoice submission within 24 hours.
High Transaction Volume: Given the volume of walk-in patients, the hospital must manage a high frequency of e-invoice in hospital environments efficiently.
Scenario 2: Inpatients (B2B Transactions with Insurance Companies)
Process Flow
1. Admission & Insurance Verification: The inpatient is admitted, and their insurance details are recorded by the hospital.
2. Advance Payments & Treatment: The hospital provides treatment while maintaining records for insurance billing.
3. Proforma Invoice: A proforma invoice is generated and sent to the insurance company for approval at the end of the month.
4. Invoice Creation Upon Confirmation: Once the insurance company confirms the claim, the final e-invoicein hospital systems is generated.
5. Invoice Transmission to ZATCA: The invoice is immediately sent to ZATCA to comply with e-invoicing regulations.
Challenges & Compliance Requirements
Delayed Invoice Creation: Since insurance companies confirm payments later, the hospital must carefully track pending invoices.
Proper Documentation: Hospitals must maintain accurate records of services provided and payments received.
Timely Submission to ZATCA: Once the insurance company confirms the claim, the e- invoice must be sent to ZATCA immediately.
Key Takeaways
1. B2C (Walk-in Outpatients): Immediate QR code generation and invoice submission within 24 hours.
2. B2B (Inpatients with Insurance): Proforma invoices sent first, followed by final invoices submitted to ZATCA after insurance confirmation.
3. Technology Challenges: Hospitals must ensure robust API integration for real-time QR code generation and seamless ZATCA reporting.
4. e-Invoice in Hospital Integration: Seamless e-invoicing systems are essential to support both patient-side and insurance-side workflows.
This case study highlights the importance of automation, compliance, and API readiness in the hospital industry’s e-invoicing process.
