When to issue which
| Situation | Invoice required |
|---|---|
| Supply to a business or government body above SAR 1,000 | Tax invoice |
| Supply with a value below SAR 1,000 | Simplified tax invoice allowed |
| Supply to an individual not subject to VAT, any value | Simplified tax invoice |
| Export of goods | Tax invoice |
| Exempt supply (e.g. exempt financial services, residential rent) | No tax invoice |
Rule of thumb: if the customer is a VAT-registered business, issue a full tax invoice even for small amounts — it needs its details on the invoice to recover input VAT. A full tax invoice can always be issued instead of a simplified one.
Mandatory fields compared
| Field | Tax invoice | Simplified invoice |
|---|---|---|
| Title: "Tax Invoice" or "Simplified Tax Invoice" | ✔ | ✔ |
| Issue date and time | ✔ | ✔ (date) |
| Date of supply, if different from the issue date | ✔ | — |
| Unique sequential number | ✔ | ✔ under e-invoicing |
| Seller name, address in KSA and VAT number | ✔ | ✔ |
| Buyer name and address | ✔ | — |
| Buyer VAT number (or an alternative ID such as CR if not registered) | ✔ | — |
| Description, quantity and unit price | ✔ | Description of goods or services |
| Discounts and taxable amount before VAT | ✔ | — |
| VAT rate and VAT amount in SAR | ✔ | VAT, or a statement that the price includes 15% VAT |
| Total including VAT | ✔ | ✔ |
| Special-treatment statement (export, deemed supply, summary invoice) when the standard rate does not apply | ✔ | — |
| QR code | ✔ | ✔ |
Example
A grocery shop sells goods worth SAR 90 with SAR 13.50 VAT. Its simplified invoice can either show the VAT of SAR 13.50, or show the total of SAR 103.50 with a clear statement that it includes VAT at the standard rate. This is the example ZATCA itself uses in its guideline.
B2B vs B2C under e-invoicing
| Tax invoice (B2B) | Simplified invoice (B2C) | |
|---|---|---|
| Mechanism | Clearance | Reporting |
| Sent to ZATCA | Before it is shared with the buyer | Within 24 hours of issue |
| Valid from | ZATCA's clearance and stamp | Issue, stamped by your solution |
| Buyer receives | The cleared invoice | A paper or electronic copy at once |
The logic: a business invoice supports someone else's VAT deduction, so ZATCA checks it first; a consumer invoice is issued at the till and reported afterwards. For the full integration process, read the ZATCA e-invoicing Phase 2 guide.
Example of a full tax invoice
A supplier sells 20 cartons at SAR 60 each to a VAT-registered business, with a SAR 100 discount:
| Line | Amount (SAR) |
|---|---|
| 20 × 60 | 1,200.00 |
| Discount | (100.00) |
| Taxable amount before VAT | 1,100.00 |
| VAT 15% | 165.00 |
| Total including VAT | 1,265.00 |
Because the buyer is a business and the value exceeds SAR 1,000, a full tax invoice is required, with the buyer's name, address and VAT number alongside every line above.
Credit notes and debit notes
An invoice is never edited after issue; its value is corrected with a note:
- Credit note: reduces a previous invoice — returned goods, a cancelled supply, a later discount, or an overcharge.
- Debit note: increases a previous invoice — for example correcting a price that was undercharged.
The note must meet the tax invoice requirements, state its type ("Credit Note" or "Debit Note") and quote the serial number of the invoice it amends. A note cannot be issued for something unrelated to a prior supply, such as a goodwill credit given to customers for a holiday. Under e-invoicing, notes follow their invoice type: cleared for standard invoices, reported for simplified ones.
Issue and retention deadlines
- Tax invoice: no later than 15 days after the end of the month in which the supply took place.
- Simplified invoice: on the date of supply or of receiving payment (in full or in part), whichever is first — financial services have an exception.
- Summary invoice: one tax invoice may cover several supplies to the same customer over a period of up to one calendar month; separate invoices are then not issued for those supplies.
- Retention: records are kept in the Kingdom, in Arabic, for at least six years from the end of the related tax period.
Common mistakes
- Issuing a simplified invoice to a VAT-registered business that needs it to deduct VAT.
- Missing the buyer's VAT number or address on a tax invoice.
- Titling the document "Invoice" without stating its type.
- Editing or deleting an invoice instead of issuing a credit or debit note.
- Rounding VAT differently from the return — the rounded invoice figures must be the ones used in the VAT return. To get the numbers right, see how to calculate 15% VAT in Saudi Arabia or try the VAT calculator.
Summary
Tax invoices are for businesses, government bodies and supplies above SAR 1,000; they carry the buyer's details and VAT number and are cleared by ZATCA before delivery. Simplified invoices are for consumers of any value or small supplies; they need only the seller's details, amount and VAT, and are reported within 24 hours. When in doubt, issue a full tax invoice. More on invoicing in Saudi Arabia on our Saudi page.