Two kinds of invoice
| Tax invoice (standard) | Simplified tax invoice | |
|---|---|---|
| Used for | Supplies to VAT-registered businesses and government | Supplies mainly to consumers |
| Buyer details | Buyer name, address and VAT number (for registered buyers) | Not required |
| VAT shown | Per line and in total, with the rate | VAT total, or a statement that prices include VAT |
| Phase 2 flow | Cleared by ZATCA before it reaches the buyer | Reported to ZATCA within 24 hours |
Fields on a tax invoice
- The words “Tax Invoice”, and an invoice date and date of supply if different.
- A sequential invoice number that identifies the invoice uniquely.
- Seller name, address and VAT registration number.
- Buyer name, address and VAT registration number (where the buyer is registered).
- Description of the goods or services, quantity and unit price excluding VAT.
- VAT rate applied, and the reason when a zero rate or exemption applies.
- Taxable amount, VAT amount and total including VAT, with VAT shown in Saudi riyals.
- From Phase 2, the QR code, UUID and the other electronic elements from your system.
Fields on a simplified tax invoice
- Invoice date and sequential number.
- Seller name, address and VAT registration number.
- Description of the goods or services.
- Total including VAT, and the VAT amount (or a clear statement that the total includes VAT).
- QR code (required since Phase 1).
Language, currency and rounding
Invoices must be in Arabic; a second language alongside Arabic is allowed and common. Amounts can be in a foreign currency, but the VAT amount must also be shown in Saudi riyals at the applicable exchange rate. Round VAT consistently per line or per invoice, so the XML total matches what is printed.
Worked example: the totals on a tax invoice
An illustration of a B2B tax invoice from a Jeddah supplier with two lines and one zero-rated export line on a separate invoice.
| Line | Qty × unit price (SAR) | Taxable (SAR) | VAT 15% (SAR) |
|---|---|---|---|
| Packing material | 200 × 12.50 | 2,500.00 | 375.00 |
| Delivery charge | 1 × 300.00 | 300.00 | 45.00 |
| Total | 2,800.00 | 420.00 | |
| Amount payable | SAR 3,220.00 |
A zero-rated export should not be mixed in with these lines; it goes on its own invoice with the zero rate and the reason, such as an export of goods outside the GCC.
Credit and debit notes
When a price changes after the invoice, goods are returned or a discount is given, issue a credit note (reduces the amount) or a debit note (increases it). It must refer to the original invoice number and date, show the reason and the change in taxable value and VAT, and, under Phase 2, follow the same clearance or reporting flow as the original. Do not edit or cancel an issued invoice; the law and Phase 1 rules prohibit changing it after issue.
Record keeping
Keep invoices, credit and debit notes, and the records behind your VAT returns for at least six years under the VAT Implementing Regulations, with longer periods for some records, such as those relating to capital assets and real estate. Under e-invoicing, keep the XML, not just a PDF, along with the hash chain your system produced. Records have to be kept in Saudi Arabia, or accessible from it under ZATCA’s conditions.
Check before you issue
- Buyer VAT number is 15 digits and matches the buyer’s certificate.
- Seller and buyer addresses are complete.
- Every line has a VAT rate, and zero-rated or exempt lines say why.
- VAT is shown in Saudi riyals when the invoice is in another currency.
- Credit and debit notes point to the original invoice.
- For Phase 2 readiness, see ZATCA Phase 2 waves and checklist and ZATCA e-invoicing explained.
Frequently asked questions
What is the difference between a tax invoice and a simplified tax invoice in Saudi Arabia?
A tax invoice is for supplies to VAT-registered businesses and shows buyer details and VAT per line; a simplified tax invoice is mainly for consumers, shows fewer details and must carry a QR code.
Must Saudi invoices be in Arabic?
Yes. A second language can appear alongside Arabic.
Can a Saudi invoice be in US dollars?
Amounts can be in a foreign currency, but the VAT amount must also be shown in Saudi riyals.
How long must VAT invoices be kept in Saudi Arabia?
At least six years under the VAT Implementing Regulations, longer for some records such as those relating to capital assets and real estate.
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