E-invoicing and ZATCA
Reporting
Reporting is the Phase 2 step for simplified tax invoices, the invoices issued to consumers. The invoice is handed to the customer at once and then reported to ZATCA within 24 hours, so the sale is not held up while you wait for a reply.
What it means
Reporting reverses the order of clearance. For a consumer sale, speed at the counter matters, so the simplified tax invoice is issued immediately and sent to ZATCA afterwards. The deadline is 24 hours, which is a clock your system should watch for you, since nobody wants to count hours by hand. This means a simplified invoice does not wait for a reply from ZATCA before it reaches the customer, unlike a standard tax invoice.
The point for an owner is not to let reports pile up unnoticed. An invoice that was issued but never reported is a gap in your records with ZATCA, so someone has to look at the list of unsent invoices every day, especially after a day when the connection dropped. It is not enough to assume that everything was sent.
At a cafe till, each customer gets a printed or digital invoice with a QR code within seconds, and the report goes to ZATCA inside the 24 hours. A manager who opens the day's unsent invoices each morning finds a problem in good time. That small habit keeps the reporting list clean and stops small errors from piling up.
In practice
- Hand the customer the simplified invoice at once, and let the report follow within 24 hours.
- Check every day for simplified invoices that have not been reported yet.
- Make sure each till or branch has a working internet connection during opening hours.
- Do not mix up reporting with filing your VAT return; they are separate duties.
Questions about Reporting
How long do I have to report a simplified invoice?
Within 24 hours, under the Phase 2 rules. The customer receives the invoice at once, and the report goes to ZATCA afterwards. Check ZATCA's published documents for the details of your own case, and use the list of unsent invoices in your system, reviewing it at the end of each working day, so the window is not missed.
Is reporting the same as filing a VAT return?
No. Reporting sends individual simplified invoices to ZATCA after they are issued. A VAT return is a separate summary of a tax period, filed by the taxpayer on ZATCA's own portal. Fatooraz produces VAT reports to help you, but it does not file the return.
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