Tax & ZakatTax Invoice Requirements
Synonyms: Tax Invoice Rules، Mandatory Invoice Fields، E-Invoicing Requirements
Last updated: 2026-09-25
Short Definition
Tax invoice requirements are the data fields and formal and technical conditions that an invoice issued by a VAT registrant must satisfy to be legally valid, both to evidence the supplier's output VAT and to allow the customer to deduct input VAT.
Overview
Tax invoice requirements are the data fields and formal and technical conditions that an invoice issued by a VAT registrant must satisfy to be legally valid, both to evidence the supplier's output VAT and to allow the customer to deduct input VAT. A defective invoice can cost the customer its right to deduct and expose the supplier to fines.
Saudi Arabia's VAT Implementing Regulations define two types. A tax invoice, for business-to-business supplies, must show in Arabic (a translation may be added): the date of issue, a unique sequential number, the supplier's VAT number, the names and addresses of supplier and customer, the customer's VAT number where required, the quantity or scope and nature of the goods or services, the date of supply if different, the taxable amount, unit price excluding VAT and any discounts, the VAT rate and the VAT amount in SAR, and an explanation where the standard rate is not applied; it must be issued no later than the 15th day of the month following the supply. A simplified tax invoice, for individual consumers, shows the date of issue, the supplier's name, address and VAT number, a description of the supply, the consideration, and the VAT or a statement that the price includes it.
Invoices are issued electronically under the e-invoicing (FATOORA) system: Phase 1 (generation and storage) since 4 December 2021, and Phase 2 (integration) rolled out in waves since 1 January 2023, under which standard tax invoices are cleared by the FATOORA platform before being shared with the buyer and simplified invoices are reported within 24 hours of issue, with a mandatory QR code on simplified invoices. Wave 24 covered businesses whose VAT-able revenue exceeded SAR 375,000 in 2022, 2023 or 2024, with an integration deadline of 30 June 2026, and Wave 25 starts on 1 February 2027 for those whose VAT-able revenue exceeded SAR 187,500 in any year from 2022 to 2025. In real estate, these requirements apply to invoices for commercial rent, brokerage commissions and property management fees.
⚖️ Legal Basis
Invoice requirements rest on the VAT Law issued by Royal Decree No. (M/113) dated 2/11/1438H; the tax invoice article of its Implementing Regulations (fields of tax and simplified invoices, issue deadlines and the Arabic-language requirement); and the E-Invoicing Regulation issued by ZATCA on 4 December 2020 with the decisions implementing its phases. Article 44 of the Law provides for a fine of up to SAR 100,000 for a non-registered person issuing a tax invoice, and Article 45 a fine of up to SAR 50,000 for breaching the Law or the Regulations.
💡 Practical Example
A registered property management company integrated with FATOORA leases a shop to a registered trading company for a quarterly rent of SAR 90,000. On the instalment due date it issues a tax invoice in Arabic showing a sequential number, its own and the tenant's VAT numbers, both parties' names and addresses, a description (rent of shop no. 4 for April to June), the amount of SAR 90,000, the 15% rate, VAT of SAR 13,500 and a total of SAR 103,500. The invoice is sent to the platform for clearance before being shared with the tenant, who then deducts SAR 13,500 as input VAT. At the same time, the company lets a furnished serviced apartment to a visitor for 3 nights at SAR 1,150 including VAT; it issues a simplified invoice with a QR code showing VAT of SAR 150 and reports it to the platform within 24 hours.
⚠️ Common Mistakes
- ✗Issuing invoices in English only, when the regulations require Arabic and allow a translation to be added.
- ✗Omitting the supplier's VAT number or customer details, or naming an entity other than the actual tenant, which removes the customer's right to deduct.
- ✗Issuing invoices from generic tools such as spreadsheets after becoming subject to the integration phase, instead of a solution compliant with ZATCA's requirements.
- ✗Issuing the tax invoice later than the 15th day of the month following the supply.
- ✗Issuing a tax invoice or collecting VAT without being registered, a violation that can be fined up to SAR 100,000.
🌍 International Differences
Countries in the region are moving to mandatory e-invoicing to varying degrees. The UAE has announced a mandatory e-invoicing system to be implemented in phases. Turkey requires e-Fatura and e-Arşiv for taxpayers above set revenue thresholds, and Egypt rolled out its e-invoicing system to registered taxpayers in phases. Saudi Arabia is distinctive for its clearance model, in which business-to-business invoices are approved by the FATOORA platform before issue, for 24-hour reporting of simplified invoices, and for requiring invoice data in Arabic.
FAQs
What must a Saudi tax invoice contain?▾
The date of issue, a unique sequential number, the supplier's VAT number, the names and addresses of supplier and customer, a description and quantity of goods or services, the taxable amount and unit price, the VAT rate and amount in SAR, and the customer's VAT number where required, with the data written in Arabic.
Must a tax invoice be in Arabic?▾
Yes. The Implementing Regulations require tax invoices to be issued in Arabic, and another language may be added as a translation. Records must also be kept in Arabic for at least six years.
Is a QR code mandatory on invoices?▾
Yes on simplified tax invoices issued to consumers. In the integration phase, the FATOORA platform clears standard tax invoices by adding a cryptographic stamp and QR code before they are shared with the buyer.
Who must integrate with the FATOORA platform?▾
ZATCA brings taxpayers into integration in waves and notifies them at least six months ahead. Wave 24 covered those whose VAT-able revenue exceeded SAR 375,000 in 2022, 2023 or 2024, and Wave 25 starts on 1 February 2027 for those above SAR 187,500.
What is the penalty for a non-compliant invoice?▾
The fine can reach SAR 50,000 under Article 45 of the VAT Law, and such fines are excluded from the penalty-cancellation initiative. The customer may also lose the right to deduct the VAT shown on the invoice.
