E-Invoicing in Saudi Arabia

How to set up e-invoicing in Saudi Arabia

1. 1Assess where you sit in the Saudi Arabia rollout and what your obligation date is.
2. 2Clean master data first — tax numbers, addresses, item codes and units of measure fail validation more often than the invoice logic does.
3. 3Onboard technically: certificates, credentials and a sandbox run before the live cutover.
4. 4Validate a representative sample of real documents, including credit notes and foreign-currency sales.
5. 5Go live with monitoring so rejected documents are re-issued the same day rather than discovered at month end.

E-Invoicing document requirements in Saudi Arabia

• Arabic is mandatory on the face of the invoice; English may be added as a second language
• Simplified tax invoices (B2C) require a TLV-encoded QR code containing seller name, VAT number, timestamp, total and VAT amount
• Standard tax invoices (B2B) must carry a UUID, previous invoice hash and ZATCA cryptographic stamp
• Buyer VAT number is required on all standard tax invoices
• Invoices must be stored in XML or PDF/A-3 with embedded XML

E-invoicing is mandatory in two phases: Phase 1 (Generation) since December 2021 and Phase 2 (Integration) rolling out by taxpayer waves, requiring XML (UBL 2.1), a cryptographic stamp, UUID, hash chain and a TLV QR code, with B2B invoices cleared in real time and B2C invoices reported within 24 hours.

E-Invoicing mistakes that cost money in Saudi Arabia

• Assuming a PDF emailed to the customer counts as an electronic invoice — it does not.
• Missing structured archive requirements: invoices and accounting records must be retained for 6 years (11 years for capital assets and real estate) and be available in arabic.
• Format breaches carry real cost: SAR 5,000 to SAR 50,000 for e-invoicing breaches such as a missing QR code, deleting invoices or blocking ZATCA access.

Penalties applied by Zakat, Tax and Customs Authority (ZATCA)

• SAR 10,000 for failing to register for VAT within the deadline
• 5–25% of the VAT due for filing a return late, depending on the delay
• 5% of the unpaid VAT for every month or part month the payment is overdue
• SAR 5,000 to SAR 50,000 for e-invoicing breaches such as a missing QR code, deleting invoices or blocking ZATCA access
• Up to 50% of the undeclared tax for filing an incorrect return

Figures reflect the published position of Zakat, Tax and Customs Authority (ZATCA) and should be confirmed on ZATCA e-services and the FATOORA platform before you rely on them for a filing decision.

E-Invoicing in Saudi Arabia: frequently asked questions