Simplified Tax Invoice Saudi Arabia vs Standard Tax Invoice

Saudi Arabia has two kinds of VAT invoice: the standard "tax invoice" and the shorter "simplified tax invoice". Using the wrong one can cost your customer their input VAT claim and can expose you to penalties. This simplified tax invoice Saudi Arabia guide explains when the short form is allowed, what each type must contain, the deadlines for issuing them and the mistakes small businesses make most often.

Where the rules come from

Invoicing rules in the Kingdom are set mainly by Article 53 of the VAT Implementing Regulations, together with the e-invoicing (FATOORA) rules. ZATCA explains them in practical terms in its Guideline for Tax Invoicing and Records, which was updated in May 2026 (Version 3). Most of what follows is based on that guideline.

Both documents only apply to businesses registered for VAT. If you are not registered, you should not issue either type, and you should not charge VAT.

Tax invoice vs simplified tax invoice: the definitions

Standard tax invoice (usually B2B)

The standard tax invoice is the full document. ZATCA says it is usually issued for business-to-business (B2B) and business-to-government (B2G) sales, and it must be used for business sales of SAR 1,000 or more. It carries full details of both seller and buyer, so the buyer can use it to recover input VAT.

Simplified tax invoice (usually B2C)

The simplified tax invoice is a shorter form of tax invoice. According to ZATCA, it may be issued in two cases:

1. For a supply of goods or services worth less than SAR 1,000.
2. For all supplies to a natural person who is not subject to VAT, whatever the value. This is the normal retail or consumer (B2C) case.

So a shop selling a SAR 4,000 television to an individual can issue a simplified tax invoice, but a supplier selling SAR 4,000 of stationery to a company must issue a standard tax invoice.

Required fields side by side

The table below compares the main data each invoice type must show, based on ZATCA's guideline. Your e-invoicing solution may add more technical fields, and you can always add extra commercial details such as payment terms or bank details.

The buyer's VAT number and other buyer details

For a standard tax invoice, the buyer's VAT registration number must appear when the buyer is registered. If the buyer is a business that is not VAT-registered, ZATCA's guideline asks for another identifier instead, in a set order of priority: for example, the Tax Identification Number, Commercial Registration (CR) number, a municipal or investment licence, and finally a national ID, GCC ID, iqama or passport number.

A common question is: "If my customer has no VAT number, can I always issue a simplified invoice?" Not always. A company that is not VAT-registered is still a business, not a "natural person who is not subject to tax". If the sale is SAR 1,000 or more, it needs a standard tax invoice with the buyer's CR or other identifier.

Arabic, currency and the QR code

Arabic is required, bilingual is allowed

The Implementing Regulations require invoices to be issued in Arabic, in addition to any other language you use. A bilingual Arabic-English invoice is therefore fine, and it is the most common format. ZATCA treats the Arabic text as the official version. Some details may be written in Latin characters: Western or Arabic-Indic numerals, currency codes like SAR or USD, and proper names (such as brand or product names) that are not usually translated.

VAT must be shown in Saudi riyals

You can price in another currency, but the VAT amount must be stated in SAR, converted using the Saudi Central Bank's daily rate. VAT is rounded to the nearest halala (two decimals).

The QR code

A QR code is mandatory on simplified tax invoices. When scanned, the basic QR shows five pieces of data: the seller's name, the seller's VAT number, the invoice date and time, the total VAT, and the invoice total. These values are encoded in a format called TLV (tag-length-value) and then Base64. Under Phase 2 (integration), the QR also carries cryptographic data, such as the invoice hash and digital signature, generated by a compliant e-invoicing system. ZATCA's guideline also lists the QR code among the elements of a standard tax invoice, so in practice most businesses include it on both.

When to issue each invoice

• Standard tax invoice: no later than 15 days after the end of the month in which the supply took place.
• Simplified tax invoice: on the date of supply or the date you receive payment (in full or in part), whichever comes first. There is a limited exception for financial services.

The invoice must also be delivered to the customer, on paper or electronically, within the same time limit. Once issued, an invoice should not be edited. If something changes, you correct it with a note, not by changing the original.

Credit and debit notes in brief

If the value of a sale changes after you have issued a tax invoice, Article 54 of the Implementing Regulations requires a credit note (value goes down) or a debit note (value goes up). Typical reasons are returned goods, a cancelled order, a later discount or a pricing error. The note must meet the same content rules as a tax invoice, be titled "Credit Note" or "Debit Note", and refer to the number of the original invoice. You cannot use a credit note just to record a payment or an account settlement.

Worked example with 15% VAT

Riyadh Office Supplies is VAT-registered. It makes two sales on the same day.

Sale 1: to a VAT-registered company (standard tax invoice)

Because the buyer is a business and the value is over SAR 1,000, this must be a standard tax invoice showing the buyer's name, address and 15-digit VAT number, with the VAT rate and amount on each line.

Sale 2: walk-in customer (simplified tax invoice)

An individual buys a printer for SAR 230, VAT included. The VAT inside the price is 230 × 15 ÷ 115 = SAR 30.00, so the net price is SAR 200.00. The simplified tax invoice can show "Total SAR 230.00, VAT SAR 30.00", or simply "Total SAR 230.00 (includes VAT at 15%)", plus the seller's details, description, date and time, and the QR code. The customer's name is not needed.

Common mistakes to avoid

• Issuing a simplified invoice to a business for SAR 1,000 or more. The buyer cannot rely on it, and it does not meet the rules.
• English-only invoices. Without Arabic, ZATCA may not accept the document as a valid tax invoice, and your customer's input VAT claim can be challenged.
• Wrong or missing VAT numbers. A Saudi VAT number has 15 digits and starts and ends with 3. Check your customer's number on ZATCA's lookup service.
• Editing an issued invoice instead of issuing a credit or debit note.
• Missing the deadline for standard invoices at month-end.
• Using a word processor for official invoices. ZATCA's guideline tells VAT-registered businesses to issue and store invoices through a compliant e-invoicing system, not handwritten or word-processed documents.

How GCCInvoice handles both formats

To be clear about what our tool does: the GCCInvoice tax invoice generator prints both formats in Arabic and English. It automatically titles the document "Simplified Tax Invoice" when you leave the buyer's VAT number empty, and "Tax Invoice" when you enter one. For SAR invoices that include a seller VAT number, it adds a TLV-encoded QR code with the five basic fields. Remember the point above, though: a business buyer without a VAT number may still need a standard tax invoice, so check the title before you send.

GCCInvoice is not a ZATCA Phase 2 (integration) solution. It does not create the XML file, cryptographic stamp or invoice hash, and it does not send invoices to ZATCA for clearance or reporting. If you are VAT-registered, use a FATOORA-compliant system for your official invoices. GCCInvoice is useful for quotations, proforma invoices, receipts, businesses below the registration threshold, and for checking how a correct invoice should look.

Key takeaways

• A simplified tax invoice is allowed for supplies under SAR 1,000, or for any sale to an individual who is not VAT-registered.
• B2B sales of SAR 1,000 or more need a standard tax invoice with full buyer details.
• Both types must include Arabic; bilingual invoices are fine.
• The QR code is mandatory on simplified invoices, and the VAT amount must be in SAR.
• Standard invoices are due within 15 days after month-end; simplified invoices at the time of sale or payment.
• Correct mistakes with credit or debit notes, never by editing the original.

Frequently asked questions

Can a simplified tax invoice be used to claim input VAT?

ZATCA's guideline lists a correctly issued simplified tax invoice among the documents that can be accepted as evidence for deducting input VAT. However, business purchases of SAR 1,000 or more should be documented with a standard tax invoice, so ask your supplier for one.

Does a simplified tax invoice need the customer's name?

No. The buyer's name, address and VAT number are not required on a simplified tax invoice. You may add them if you wish.

Is an English-only invoice valid in Saudi Arabia?

No. Invoices must be in Arabic, and you may add English or another language alongside it. Proper names, numbers and currency codes can be written in Latin characters.

How long must I keep invoices?

ZATCA's guideline sets a basic retention period of at least six years, with longer periods for some records, such as those relating to capital assets and real estate.

To see what a correct bilingual Saudi invoice looks like, try the Saudi invoice generator. It handles the 15% VAT calculation and the title for you.

This article is general information, not tax or legal advice. Rules change, so check with ZATCA or a qualified adviser before acting. Last reviewed: October 2026.