Saudi Arabia VAT Invoice Requirements: Mandatory Fields & Rules

Saudi Arabia's VAT Invoice System

Since VAT was introduced in Saudi Arabia on 1 January 2018 at 5% (increased to 15% on 1 July 2020), ZATCA has established strict requirements for tax invoices. With the FATOORAH e-invoicing mandate, these requirements are now enforced electronically.

Since VAT was introduced in Saudi Arabia on 1 January 2018 at 5% (increased to 15% on 1 July 2020), ZATCA has established strict requirements for tax invoices. With the FATOORAH e-invoicing mandate, these requirements are now enforced electronically.

Two Types of Saudi VAT Invoices

1. Tax Invoice (فاتورة ضريبية) — For B2B

Required for all business-to-business transactions. Must include:

• Invoice title — "Tax Invoice" or "فاتورة ضريبية" in Arabic
• Sequential invoice number
• Date of issue (Gregorian or Hijri calendar — both accepted)
• Date of supply (if different from issue date)
• Seller's details: name (Arabic), address, VAT registration number
• Buyer's details: name, address, VAT registration number
• Description of goods/services
• Quantity and unit price (excluding VAT)
• Discount amount (if applicable)
• VAT rate (15%, 0%, or exempt) per line item
• VAT amount per line item and total
• Total amount excluding and including VAT
• QR code
• Currency (SAR or foreign with conversion)

2. Simplified Tax Invoice (فاتورة ضريبية مبسطة) — For B2C

For consumer sales and transactions under SAR 1,000:

• Invoice title: "Simplified Tax Invoice" or "فاتورة ضريبية مبسطة"
• Seller's name, address, and VAT number
• Date and time of issue
• Description of goods/services
• Total amount including VAT
• VAT amount
• QR code (mandatory — even for simplified invoices)

Note: buyer details are not required on simplified invoices.

VAT Rates in Saudi Arabia

VAT Rates in Saudi Arabia — 15%: Most goods and services (standard rate).

Language Requirements

ZATCA requires the seller's name to be in Arabic. Other fields can be bilingual (Arabic + English).

ZATCA requires the seller's name to be in Arabic. Other fields can be bilingual (Arabic + English). If issuing to international customers, a bilingual invoice is recommended but the Arabic seller name is always mandatory.

Credit Notes and Debit Notes

If you need to adjust a previously issued invoice:

If you need to adjust a previously issued invoice:

• Credit note (إشعار دائن) — reduces the original invoice amount (returns, discounts, corrections)
• Debit note (إشعار مدين) — increases the original invoice amount

Both must reference the original invoice number and include all the same mandatory fields.

Common Compliance Mistakes

Common Compliance Mistakes includes: Missing QR code — mandatory even on simplified invoices since Phase 1 Seller name not in Arabic — English-only names are rejected

1. Missing QR code — mandatory even on simplified invoices since Phase 1
2. Seller name not in Arabic — English-only names are rejected
3. Incorrect VAT rate — applying 5% (the old rate) instead of 15%
4. Missing buyer VAT number on B2B invoices — required for tax invoices
5. No sequential numbering — gaps in invoice numbers trigger ZATCA inquiries

Create Saudi-Compliant Invoices

Invoicemonk supports Saudi Arabia with 15% VAT calculation, SAR currency, all mandatory fields, and professional formatting.

Invoicemonk supports Saudi Arabia with 15% VAT calculation, SAR currency, all mandatory fields, and professional formatting. Get started →