A tax invoice (standard invoice) is issued mainly for B2B and B2G sales and includes the buyer’s details. In Phase 2 it must be cleared by ZATCA before you share it with the buyer. A simplified tax invoice is issued mainly for B2C sales, usually without buyer details, and in Phase 2 it is reported to ZATCA within 24 hours. A business may also issue a simplified invoice to another business when the supply is below SAR 1,000.
The two invoice types at a glance
| Tax invoice (standard) | Simplified tax invoice | |
|---|---|---|
| Used for | B2B and B2G sales | B2C sales; B2B only below SAR 1,000 |
| Legal basis | VAT Implementing Regulations, Article 53(5) | Article 53(7) and (8) |
| Buyer details | Required (name, address, VAT number if registered) | Usually not required |
| Phase 2 process | Clearance: ZATCA validates and stamps before sharing | Reporting: send to ZATCA within 24 hours |
| Cryptographic stamp | Applied by ZATCA during clearance | Applied by your solution |
| QR code | Generated by ZATCA at clearance and printed by you | Generated by your solution |
| Sharing with the buyer | XML or PDF/A-3 with embedded XML | Printed copy, or electronic if agreed |
| When to issue | Up to 15 days after the end of the month of supply | At the time of the sale |
The SAR 1,000 rule
A simplified tax invoice can be used for a B2B sale only if the value of taxable supplies is less than SAR 1,000. For B2C sales there is no limit: a simplified invoice can be issued for any amount, even above SAR 1,000.
What a tax invoice must show
Article 53 of the VAT Implementing Regulations and Annex 2 of the E-Invoicing Resolution list the required fields. They include, among others:
- the words "Tax Invoice", the invoice date and a unique, sequential invoice number
- the seller’s name, address and VAT number
- the buyer’s name and address, and the buyer’s VAT number if registered
- the date of supply if different from the invoice date
- the description, quantity and unit price of each item, excluding VAT
- the VAT rate and VAT amount for each line or category, and any discounts
- the total amount payable including VAT, in SAR
- for Phase 2, technical fields such as the UUID, invoice hash and counter, and the QR code returned by ZATCA
What a simplified tax invoice must show
A simplified invoice is shorter. It includes, among others:
- the invoice date and a sequential number
- the seller’s name, address and VAT number
- a description of the goods or services
- the total including VAT and the VAT amount (or a statement that the total includes VAT)
- the QR code, which is mandatory on simplified invoices from Phase 1
Exception: buyer details may be required on simplified invoices for private education and private healthcare to Saudi citizens, which are zero-rated with the VAT borne by the state.
Clearance (tax invoices) vs reporting (simplified invoices)
- Clearance: in Phase 2, each tax invoice is sent to ZATCA’s Fatoora platform in real time. If it passes validation, ZATCA adds its cryptographic stamp and QR code. Only then is the invoice legally valid to share. Credit and debit notes on tax invoices are cleared too.
- Reporting: simplified invoices are stamped by your own solution, given to the customer immediately, and uploaded to ZATCA within 24 hours of issue.
Both must be in Arabic
The human-readable invoice must be in Arabic; other languages can be added. Any note or remark on the invoice must also appear in Arabic. Arabic or Hindi numerals are both accepted.
Common mistakes
- Issuing a simplified invoice to a business for SAR 1,000 or more.
- Sharing a tax invoice with the buyer before ZATCA has cleared it (Phase 2).
- Missing the buyer’s address or VAT number on a B2B invoice. This can cause warnings or rejection.
- Invoices printed in English only.
- "Cancelling" an invoice instead of issuing a credit note. See credit and debit note rules.
LUBA ERP issues both types, clears tax invoices, reports simplified invoices and prints them in Arabic and English. See LUBA ERP ZATCA e-invoicing software, or go back to the ZATCA e-invoicing rules guide.
Sources
Frequently asked questions
What is the difference between a tax invoice and a simplified tax invoice?
A tax invoice is for B2B and B2G sales, includes the buyer’s details and in Phase 2 is cleared by ZATCA before sharing. A simplified tax invoice is for B2C sales, usually without buyer details, and in Phase 2 is reported to ZATCA within 24 hours.
Can I issue a simplified invoice to a company?
Yes, but only if the value of the taxable supply is less than SAR 1,000. Above that, a business customer must receive a standard tax invoice.
Is there a maximum amount for a simplified invoice to consumers?
No. For B2C sales a simplified tax invoice can be issued for any amount; the SAR 1,000 limit applies only to B2B use.
When must a tax invoice be issued?
A tax invoice may be issued up to 15 days after the end of the month in which the supply took place. Simplified invoices are issued at the time of the sale and reported within 24 hours in Phase 2.
Does a simplified invoice need a QR code?
Yes. Simplified tax invoices must carry a QR code from Phase 1. In Phase 2 the QR code contains additional security fields.
Do invoices have to be in Arabic?
Yes. The human-readable invoice must be in Arabic, including any notes. You can add English or another language alongside the Arabic.
How do I share a Phase 2 tax invoice with my customer?
Share the cleared invoice in XML or PDF/A-3 with embedded XML. If the buyer can process XML and agrees, sending the XML alone is valid.
Can a simplified invoice be sent by email?
Yes, if both parties agree. Otherwise a printed copy must be given to the customer.
