Under ZATCA rules an issued e-invoice can never be deleted or edited. To cancel or reduce it, you issue a credit note; to increase it, a debit note. Every note must reference the original invoice (several invoices can be given as a range), follows the same type as the invoice (standard or simplified), and in Phase 2 is cleared or reported to ZATCA just like an invoice.
Can I cancel an e-invoice?
Not directly. ZATCA lists alteration or deletion of issued e-invoices as a prohibited function. If you want to "cancel" an invoice, ZATCA’s guideline says this can only be done by issuing a credit note and, if needed, a new invoice.
Credit note vs debit note
| Credit note | Debit note | |
|---|---|---|
| Purpose | Reduce or cancel the original invoice, refund the buyer, correct an error | Increase the value of the original invoice or its VAT |
| Examples | Goods returned, price reduced, discount after invoicing, invoice issued by mistake | Extra charges, price increase, VAT under-charged |
| Legal basis | VAT Implementing Regulations, Articles 40(1) and 54 | Same |
| Format | Same type as the original invoice | Same type as the original invoice |
Rules every note must follow
- Reference the original invoice. ZATCA’s FAQ is clear: a credit note without a reference to the original invoice violates Article 54 of the VAT regulations.
- Several invoices in one note: list the invoice reference numbers, or give them as a range (for example, invoices 001 to 100 issued between 1 January and 31 March).
- Same type as the invoice: a note on a tax invoice is a standard note; a note on a simplified invoice is a simplified note.
- Phase 2: notes on tax invoices are cleared; notes on simplified invoices are reported within 24 hours.
- Own number, hash and counter: each note is a new document with its own sequence values.
- In Arabic, with the reason for the adjustment.
What if ZATCA rejects my invoice?
A rejected invoice (response 400) is not valid, so it is not "cancelled". Fix the errors and submit it as a new document, with its own counter value and hash. The rejected document’s hash and counter are not reused or changed.
Advance payments
Receiving an advance payment requires a tax invoice. ZATCA’s guideline explains how to adjust it later:
- The advance payment invoice uses invoice type code 386; the final invoice that deducts the advance uses 388.
- The final invoice references the advance invoice number, date and time (and its UUID).
- The amount already invoiced is deducted per VAT category and rate, including advances taken at the old 5% VAT rate.
- If the advance is larger than the final invoice and money is refunded, issue a credit note for the difference, which is also cleared or reported.
Step-by-step: correcting a wrong invoice
- Find the original invoice and confirm what is wrong.
- Issue a credit note referencing it, for the full amount (to cancel) or the difference.
- If the sale still stands, issue a new correct invoice.
- Clear or report both documents (Phase 2) and share them with the customer.
- Keep all of them. Nothing is deleted.
LUBA ERP creates credit and debit notes from the original invoice, limits quantities to what was invoiced, records the reason, and clears or reports the note to ZATCA. See LUBA ERP ZATCA e-invoicing software or go back to the ZATCA e-invoicing rules guide.
Sources
Frequently asked questions
How do I cancel an e-invoice in Saudi Arabia?
You cannot delete or edit it. Issue a credit note referencing the original invoice for the full amount, and issue a new correct invoice if the sale still stands.
Can I issue a credit note without referencing an invoice?
No. ZATCA states that a credit note without a reference to the original invoice violates Article 54 of the VAT Implementing Regulations.
Can one credit note cover several invoices?
Yes. List the original invoice reference numbers, or give them as a range when there are many.
Do credit and debit notes go to ZATCA in Phase 2?
Yes. Notes on tax invoices are cleared, and notes on simplified invoices are reported within 24 hours, just like invoices.
What is the difference between a credit note and a debit note?
A credit note reduces or cancels the original invoice (returns, discounts, errors). A debit note increases the invoice value or its VAT.
My invoice was rejected by ZATCA. Do I need a credit note?
No. A rejected invoice is not valid. Fix the errors and submit it as a new document with its own counter and hash.
How are advance payments adjusted in e-invoices?
The advance payment invoice uses type code 386, and the final invoice (type 388) deducts the advance, referencing the advance invoice’s number, date and time, per VAT category and rate.
