Invoices and documents

Simplified tax invoice

A simplified tax invoice is the invoice you issue for sales to consumers, such as at a cafe till or a shop counter. You hand it over at once, then report it to ZATCA within 24 hours. It carries a QR code.

What it means

Picture the receipt a cafe prints when a customer pays for a coffee and a sandwich. In Saudi e-invoicing that receipt is a simplified tax invoice: a real VAT invoice, issued electronically and handed over on the spot so the customer never waits. It is the type used for consumer sales, which is why retail shops, restaurants and salons mostly issue this kind: in short, any business that takes payment from its customer at the till.

The difference from a standard invoice is timing. The customer is standing at the till, so you cannot wait for anyone's reply. Under Phase 2 you issue first and report afterwards: your system sends the invoice to ZATCA within 24 hours. If a shop loses its internet connection for an hour, sales carry on, but the 24-hour limit keeps running.

A QR code has been required on simplified invoices since Phase 1 and still is. A Fatooraz point of sale (Business plan) issues simplified invoices with the QR code and sequential numbering, so the cashier only rings up the sale. Check from time to time that the printed receipt shows the code clearly enough to be scanned. When your reporting duty starts depends on your wave, which ZATCA announces.

In practice

Give the customer a simplified tax invoice at the moment of payment.
Check that a QR code appears on every printed or digital invoice.
Under Phase 2, make sure each invoice is reported within 24 hours of issue.
Review unsent or rejected invoices every day, before the 24-hour limit passes.

Questions about Simplified tax invoice

What is the difference between a simplified and a standard tax invoice?

A standard tax invoice is for businesses and government entities and, in Phase 2, is cleared by ZATCA before the buyer receives it. A simplified one is for consumers: it is issued immediately and reported within 24 hours. So the type of buyer, not the size of the sale, decides which one you use.

Does a simplified tax invoice need a QR code?

Yes. Phase 1, in force since 4 December 2021, requires a QR code on simplified invoices, and under Phase 2 the code remains one of the elements each invoice carries. For a cafe, that means every receipt, whether printed or digital, includes the code.

Reporting Standard tax invoice Invoice QR code E-invoicing Phase 1 (generation phase)

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