First: General header data on a tax invoice
• A statement that the document is a tax invoice. • A unique sequential number identifying the invoice within the invoicing unit's sequence. • The issue date and time. • The supply date, if different from the issue date. The sequential number is not merely an administrative detail: a compliant system does not allow it to be reset or allow more than one sequence for the same unit, and any gap or duplication raises questions on review.
Second: Seller and buyer details
• The supplier's name, address and VAT registration number. • The buyer's name, address and VAT registration number, if registered. Make sure your business's details match exactly what is registered with ZATCA, and that the buyer's VAT number has 15 digits and is correct. Missing or incorrect buyer details are among the most common reasons tax invoices are rejected in the integration phase.
Third: Details of goods or services
• A clear description of each good or service, sufficient to identify it. • The quantity and unit of measure. • The unit price before VAT. • Any discount or rebate at line or invoice level. • The VAT rate applied to each line. Avoid generic descriptions such as “assorted goods” or “services”, because a vague description weakens the invoice's value as evidence.
Fourth: Amounts and tax
• The taxable amount before VAT. • The VAT amount for each rate applied. • The VAT amount in Saudi riyals, even if the invoice is in another currency. • The total including VAT. If the invoice includes items at different rates, such as standard-rated items alongside zero-rated or exempt items, this must be shown clearly. Watch out for rounding differences between the sum of the lines and the total, as they are a common cause of rejection in phase two.
Fifth: Elements of a simplified invoice
A simplified tax invoice requires fewer elements: • The issue date. • The supplier's name, address and VAT number. • A description of the goods or services. • The amount payable. • The VAT amount, or a clear statement that the price includes VAT. • A QR code, a requirement since phase one. Buyer details are usually not required, because it is mostly issued to consumers.
Sixth: Credit and debit notes
Credit and debit notes are the legal way to change the value of an issued invoice, and they take the same type as the original invoice, tax or simplified. They must include: • An indication that it is a credit or debit note. • A reference to the number of the original invoice or invoices being adjusted. • The reason for issuing the note, such as a return, a later discount or a price correction. • The adjusted amounts and the related VAT.
Seventh: Technical elements in phase two
In the integration phase, the system adds elements the reader does not see directly, but which determine the invoice's validity: • A unique identifier (UUID) for each invoice. • The hash of the previous invoice, to link the sequence and prevent reordering. • The cryptographic stamp, added by ZATCA to tax invoices during clearance and by the business's system to simplified invoices. • An expanded QR code carrying more data than the phase one code. • XML format, or PDF/A-3 with embedded XML.
Eighth: Language, currency and retention
• Language: the invoice must be issued in Arabic, and another language may be added alongside it, with the Arabic text being the reference. • Currency: amounts may be shown in any currency, but the VAT amount must be shown in Saudi riyals. • Retention: invoices are kept for at least six years from the end of the relevant tax period, archived in XML in phase two, and remain available to ZATCA whenever requested.
Frequently asked questions
Must the buyer's VAT number appear on every tax invoice? It must be included if the buyer is VAT-registered, and it is essential for deducting their input tax. Is an English-only invoice enough if the customer is foreign? No. It must be in Arabic, and English can be added alongside it. Can a tax invoice rely on the statement “price includes VAT”? That statement is acceptable on a simplified invoice. A tax invoice must show the VAT amount clearly. Who adds the QR code to a tax invoice in phase two? ZATCA adds it during clearance, and the business's system then displays it on the invoice shared with the buyer.
Conclusion
Reviewing this list once when setting up your invoice template, then building rules into the system that block issuance when any element is missing, saves your business a great many rejected invoices and correction notes. At Shams Solutions, we help businesses prepare their accounting and ERP systems for e-invoicing, from the initial assessment and data cleanup to integration with the FATOORA platform, go-live and ongoing follow-up. Contact us to review your business's setup and agree on the right next steps.