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Billing Agreement Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that establishes the terms and conditions for billing arrangements between parties. The agreement outlines payment terms, billing procedures, and service delivery requirements while ensuring compliance with both Saudi commercial regulations and Shariah law principles. It includes provisions for electronic billing, data protection, VAT compliance, and dispute resolution mechanisms specific to the Saudi Arabian jurisdiction. The document addresses key aspects such as payment schedules, reporting requirements, and confidentiality obligations while incorporating necessary Islamic finance principles.

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What is a Billing Agreement?

The Billing Agreement is a crucial document for businesses operating in Saudi Arabia that need to establish clear and legally compliant billing arrangements. This document is particularly relevant when parties need to formalize their billing relationship, whether for ongoing services, recurring payments, or regular commercial transactions. The agreement must comply with Saudi Arabian law, including the Commercial Courts Law of 2020 and relevant SAMA regulations, while adhering to Shariah principles. It typically includes detailed provisions for payment terms, electronic billing procedures, VAT compliance, and data protection requirements. The Billing Agreement is essential for businesses that need to establish transparent financial relationships and ensure proper documentation of their billing arrangements in accordance with Saudi Arabian regulatory requirements.

What sections should be included in a Billing Agreement?

1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and the business relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Description of the billing services and related obligations

5. Billing Procedures: Detailed procedures for generating and sending bills, including timing and format

6. Payment Terms: Payment schedules, methods, currencies, and processing timeframes

7. Fees and Charges: Breakdown of all applicable fees, charges, and commission structures

8. VAT and Taxation: Provisions regarding VAT application, tax invoices, and related obligations

9. Records and Reporting: Requirements for maintaining billing records and generating reports

10. Confidentiality: Provisions for protecting confidential information exchanged during billing processes

11. Term and Termination: Duration of the agreement and conditions for termination

12. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution procedures

What sections are optional to include in a Billing Agreement?

1. Electronic Billing Systems: Specific provisions for electronic billing systems and platforms, required if electronic billing is used

2. Data Protection: Additional data protection provisions, required if handling personal data

3. Service Levels: Specific service level agreements and performance metrics, needed for complex billing arrangements

4. Currency Exchange: Provisions for handling multiple currencies, required for international billing relationships

5. Force Majeure: Provisions for unforeseen circumstances affecting billing operations

6. Anti-Money Laundering Compliance: Required for high-value transactions or financial service providers

7. Shariah Compliance: Specific provisions ensuring compliance with Islamic finance principles, required for Islamic financial institutions

What schedules should be included in a Billing Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, charges, and payment rates

2. Schedule 2 - Billing Procedures Manual: Step-by-step procedures for billing operations

3. Schedule 3 - Service Level Metrics: Detailed performance metrics and service level requirements

4. Schedule 4 - Approved Electronic Systems: List of approved electronic billing systems and technical requirements

5. Appendix A - Standard Invoice Template: Template for invoices including all required legal and tax information

6. Appendix B - Contact Details: List of key contacts for billing and payment matters

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Saudi Arabia

Document Type

Agreement Contract

Cost

Free to use

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