How to issue a ZATCA-compliant tax invoice, step by step

To issue a ZATCA-compliant tax invoice today, follow five steps in order: choose the invoice type by looking at who is buying, fill in the required details, give the invoice its sequential number and QR code, make sure it reaches ZATCA the way your e-invoicing phase requires, and store it. The type comes first because it decides what follows.

A standard tax invoice is for sales to businesses and government entities, such as a wholesaler billing a group of shops or a contractor billing a company for a finished stage. A simplified tax invoice is for sales to consumers, such as a cafe till or a clinic desk. The buyer decides the type, not the size of the sale. Handwritten invoices no longer meet the rule.

A tax invoice has to show who sold what to whom, when, and for how much, VAT included, so that the buyer can record it in their books without asking you. The list below gathers the main details, and a standard invoice carries every one of them. A simplified invoice asks less about the buyer, because the customer is a consumer, but it still shows the seller, the items and the VAT.

The invoice must be in Arabic, and a second language such as English may sit beside it. Treat this list as the main details, not the whole rule. ZATCA's e-invoicing rules set out the complete list of required fields for each invoice type, so read them, or ask your accountant, before finalising your invoice layout.

• Names and addresses of the seller and the buyer
• VAT registration numbers of the seller and, on a standard invoice, the buyer
• Issue date and a sequential invoice number
• Description, quantity and unit price of each item
• Discount, taxable amount, VAT rate and VAT amount
• Total payable, with the text in Arabic

Every invoice takes a number from one running sequence, so your numbers record your sales in order. Let the system assign the number when the invoice is issued, rather than typing it in by hand, and never skip or reuse one. If a mistake turns up later, the fix is a new document that refers back to the invoice, not a renumbered copy, so the sequence stays clear for anyone who reviews it.

Simplified invoices carry a QR code from Phase 1. It encodes the seller name, the VAT registration number, the date and time, the invoice total with VAT and the VAT amount, so a scan reads the key figures easily. Under Phase 2 an invoice also carries a cryptographic stamp, and your system produces both the QR code and the stamp for you, so you never draw or paste the code by hand.

Under Phase 1 you issue and store the invoice electronically, and nothing is sent to ZATCA when you issue it. Phase 2 adds a connection between your system and ZATCA's Fatoora platform, introduced in waves of taxpayers that ZATCA selects and announces. Follow its announcements as they come out to learn whether your business has been notified, and when.

In Phase 2 the route depends on the invoice type. A standard invoice is cleared: it goes to ZATCA first and reaches the buyer only after ZATCA accepts it. A simplified invoice is handed over at once and then reported to ZATCA within 24 hours. Each invoice also carries a UUID, a counter value and the hash of the previous invoice, which chains the invoices together.

Onboarding is done by the taxpayer itself, not the software provider, on the Fatoora portal: you generate a one-time password, register your system with it and pass compliance checks with sample invoices before you receive the certificate used for live invoices. ZATCA also provides a simulation environment, separate from live invoicing, where you can practise before issuing a single real invoice.

Keep every issued invoice in electronic form with its data, so you can produce it for your accountant or for ZATCA when asked. Invoices and tax records are generally kept for six years, so confirm the period for your case. Phase 2 invoices are built from XML data, and a PDF/A-3 file can carry that XML as a readable copy.

Never edit or delete an issued invoice. If goods are returned, a price was wrong or an amount was left off, issue a credit note or a debit note that refers to the original invoice and gives a reason. If a credit note reverses the whole invoice and the sale still stands, issue a new, correct invoice. Our guide on credit and debit notes in Saudi Arabia covers each case with examples.

Before you send any invoice, run a short check, and write it down so a cashier or an accountant can repeat it after you. These few checks catch most mistakes while a correction is still easy, so do not rely on memory alone. A cafe cashier and a wholesaler's accountant will check different things, so adapt the list to the way your business invoices.

Fatooraz supports ZATCA e-invoicing requirements for Phase 1 and Phase 2. It issues tax and simplified invoices and credit notes with sequential numbering and a QR code, has Arabic right-to-left screens and bilingual documents, and offers a free trial in ZATCA's simulation environment. You do the onboarding with ZATCA as the taxpayer, and Fatooraz guides you. It does not file your VAT return. Rules change, so follow ZATCA's announcements and ask your accountant too.

• The invoice type matches the buyer
• Names, addresses and VAT numbers are correct
• Each line shows the right quantity, price and VAT
• The number comes from the system and the QR code is there
• You know whether it is cleared or reported