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.​

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How does E-Invoicing (FATOORAH) work?

E-Invoicing will be rolled-out in two phases in KSA​

For the first phase, enforced 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, electronic invoice issuance will be very similar to invoices generated prior to 4 Dec 2021, with invoices issued thr​ough a compliant electronic solution and including additional fields depending on the type of the transaction.

For the second phase, enforceable starting January​ 1st, 2023 in waves, the electronic solution must be integrated with ZATCA’s systems and e-invoices should be generated in the required format.​

List of mandatory fields required to create an e-Invoice:

Module

Mandatory Fields

Organization’s details

· Organization Name

· Company Address

Building Number

Street

Additional Number

District

City

State/Province

· Zip/Postal Code

Customer’s details

· Customer Display name

· Billing Address (In Arabic)

Country / Region

Address

Additional Number

District

City

State

· Zip Code

Invoice Creation

· Item Name (In Arabic)

· Customer Name (In Arabic)

Item details

Item Name