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E - Invoicing

What is E-Invoicing?

Electronic invoicing is a procedure that aims to convert the issuing of paper invoices and notes into an electronic process that allows the exchange and processing of invoices, credit notes & debit notes in a structure electronic format between buyer and seller through an integrated electronic solution.

What is an electronic invoice?

A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that converted into an electronic format through coping, scanning, or any other method is not considered an electronic invoice.

Tax Invoice

An invoice that is usually issued by a Business to another Business (B2B), containing all tax invoice elements.​

Simplified Tax Invoice

An invoice that is usually issued by a Business to consumer (B2C) containing all simplified tax invoice elements.​

What are the required fields for the e-invoice in phase one (generation phase) and phase two (integration phase)?
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Simplified Tax Invoice Example
Simplified Tax Invoice Example - Rits
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Tax Invoice Example
Tax Invoice Example - Rits
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E-Invoicing (FATOORAH) Implemetation in KSA​

ZATCA has published e-invoicing requirements that will be rolled-out into two main phases in KSA:

PHASE 1 (as of December 4th, 2021)
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Phase 1, known as the Generation phase, will require taxpayers to generate and store tax invoices and notes through electronic solutions compliant with Phase 1 requirements.

Phase 1 is enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT.

PHASE 2 ​ (enforceable starting January 1st, 2023 in waves)
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Phase 2, known as the Integration phase and rolled-out in waves by targeted taxpayer group, will involve the introduction of Phase 2 technical and business requirements for electronic invoices and electronic solutions, and the integration of these electronic solutions with ZATCA’s systems.

ZATCA will notify taxpayers of their Phase 2 wave at least six months in advance, and the enforcement date for the first target group will not be earlier than January 1st, 2023.​​​

Guidelines (zatca.gov.sa)

More About Article 53 – Tax Invoice

  • Each Taxable Person must issue or arrange for the issuance of a Tax Invoice in respect of either of the following events:
    a) any Taxable Supply of Goods or services which he has made to another Taxable Person or to a non- taxable legal Person, b) any payment made in respect of a Supply of Goods or services to a Taxable Person or non-taxable legal Person before that Supply takes place. Any such Tax invoice must be issued at the latest the fifteenth day of the month following the month in which the Supply took place.
  • A self-billed Tax Invoice may be issued by the Customer on behalf of a Supplier in respect of a Taxable Supply made to the Customer, provided that a prior agreement between the Supplier and the Customer has been made to this effect. Such agreement must confirm a procedure for the acceptance of each Invoice by the Supplier of the Goods or services, and include an undertaking by the Supplier not to issue Tax Invoices in respect of those Supplies.
  • A Tax Invoice may be issued by a third party on behalf of a Supplier who is a Taxable Person in respect of a Taxable Supply of Goods or services. The Supplier shall be responsible for the accuracy of the information shown on the Tax Invoice and for reporting Output Tax on the supply.
  • A summary Tax Invoice may include more than one separate supply of Goods or services, provided all Supplies included on a summary Tax Invoice are made by the same Supplier and within the same Tax Period.
  • A Tax Invoice must include the following details in Arabic, in addition to any other language also shown on the Tax Invoice as a translation:
    • the date of issue,
    • a sequential number which uniquely identifies the Tax Invoice,
    • the Tax Identification Number of the Supplier,
    • in cases where the Customer is required to self-account for Tax on the Supply, the Customer’s Tax Identification Number and a statement that the Customer must account for the Tax,
    • the name and the address of the Supplier and of the Customer,
    • the quantity and nature of the Goods supplied or the scope and nature of the services rendered,
    • the date on which the Supply took place, where this differs from the date of issue of the Tax Invoice,
    • the rate of Tax applied,
  • Tax Invoices shall be issued in an electronic format in cases where this is prescribed in any regulations issued by the Minister of Finance or the Board of Directors surrounding the requirements and conditions for issue of electronic Invoices, provided these Regulations are in force as at the date of the Supply.
  • A simplified Tax Invoice may be i ssued for a Supply of Goods or services valued at less than one thousand (1,000) riyals. A simplified Tax Invoice may not be issued in respect of an Internal Supply or an Export of Goods.
  • A simplified Tax Invoice must include the following details:
    • the date of issue,
    • a sequential number which uniquely identifies the Tax Invoice,
    • the Tax Identification Number of the Supplier,
    • in cases where the Customer is required to self-account for Tax on the Supply, the Customer’s Tax Identification Number and a statement that the Customer must account for the Tax,
    • the name and the address of the Supplier and of the Customer,
    • the quantity and nature of the Goods supplied or the scope and nature of the services rendered,
    • the date on which the Supply took place, where this differs from the date of issue of the Tax Invoice,
    • the rate of Tax applied,