Frequently Asked Questions
Phase I of KSA e-Invoicing
The first phase of e-invoicing in KSA requires taxpayers to use electronic solutions or systems to generate e-invoices. They can no longer issue manual invoices. Phase I invoices need to contain the QR code and VAT number on tax invoices if such buyer is registered under the VAT law.
In the first phase, generating invoices in XML, anti-tampering features, UUID, and integration with the ZATCA system is not mandatory.
It is however mandatory in the second phase.
QR code is mandatory for simplified e-invoices for B2C transactions. It is, however, optional for standard e-invoices for B2B and B2G transactions.
Information to be displayed are the name of the seller, their VAT registration number, timestamp of electronic invoice or electronic credit note or debit note, VAT amount, and the total invoice amount.
XML Format or PDF-A3 format with embedded XML has been mandated from Phase II.
Arabic is the primary language, and any other language can be used in addition.
No specific format is mandated. However, XML Format or PDF-A3 format with embedded XML has been mandated from Phase II.
Sample invoices have been provided by ZATCA in this document:
(Please refer to Page# 7 & Page# 8)
QR Code is a matrix barcode with a pattern of black and white squares. It is machine-readable by a QR code scanner or the camera of smart devices to enable basic validation of electronic invoices and electronic notes.
QR Code must contain 5 mandatory fields as specified by ZATCA in Phase I.
- Seller’s Name
- VAT registration number of the seller
- Timestamp of the electronic invoice or credit/ debit note (date and time)
- Electronic invoice or credit/ debit note total (with VAT)
- VAT total
A tax invoice must be issued at the time of receiving an advance, with a breakup of taxable value & VAT.
Once the invoice is generated, it can neither be modified nor cancelled. In case there is a need to amend the invoice details, either a Credit Note or Debit Note, as the case may be will have to be generated against the issued Invoice.
A fresh invoice with correct particulars can be raised, subsequently.
The naming convention of the file for data storage/archive is *VAT Registration (tax registration number) * + Timestamp (date and time at the point of invoice generation) + Invoice Reference Number.
The VAT registration number is the Seller (Supplier) VAT registration number.
ZATCA does not permit more than one Invoice sequence in one specific e-invoicing solution unit at any given time. Maintaining more than one sequence is part of ZATCA mandated prohibited functionalities.
In case invoices are generated by separate businesses on separate EGS units. then, each such unit should generate a single invoice sequence.
ZATCA’s mandatory requirement is to generate a single sequence number from each e-invoice solution unit. Since no specific directions are specified with regard to separate invoice sequence for B2B & B2C supplies, it is advisable to follow a single invoice sequence number for EGS unit.
E-invoices are not required to be sent to ZATCA in Phase I. However, storage and retrieval of invoices issued, should be enabled, as and when ZATCA requires the information.
ZATCA’s present guidelines does not specify, if Invoice sequence is allowed to break based on change of the year. Hence it is advisable to continue the invoice sequence, into a new financial year or period.
It would be better if you could map a specific sequence, especially for KSA, in your Global EMR system since sequencing is a must in KSA.