Short answerA tax invoice is generally the B2B document: it shows the buyer's name and address and ZATCA clears it before the buyer receives it. A simplified tax invoice is generally the B2C document: usually no buyer details, any value, reported within 24 hours. It may also serve B2B supplies below SAR 1,000. Clearance and reporting apply in the integration phase.
What are a tax invoice and a simplified tax invoice?
A tax invoice is issued under Article 53(1) of the VAT Implementing Regulation and is generally used between businesses (B2B) and with government (B2G). A simplified tax invoice, issued under Article 53(7), is generally for consumer sales (B2C) and usually has no buyer details.
The E-invoicing Regulation treats e-invoices and e-notes as tax invoices and credit or debit notes, so the penalties in chapter 16 of the VAT Law apply to them. A scanned or copied paper invoice is not an e-invoice.
Phase 1 (generation) has applied since 4 December 2021 to all taxpayers except non-residents; Phase 2 (integration) since 1 January 2023, in waves. A business follows Phase 1 rules until its wave's notified integration date; see the e-invoicing waves guide.
Tax invoice vs simplified tax invoice in one table
The table sums up the main differences in ZATCA's Detailed Guideline and Implementation Resolution. The last four rows apply from the integration phase.
| Point | Tax invoice | Simplified tax invoice |
|---|---|---|
| Usual use | Between businesses (B2B) and with government (B2G) | Consumer sales (B2C) at any value; optional for B2B supplies below SAR 1,000 |
| Buyer details | Name and address mandatory | Usually none; name conditional, address optional |
| Path in the integration phase | Clearance by ZATCA in real time | Reporting to ZATCA within 24 hours of generation |
| Cryptographic stamp | Applied by ZATCA's platform, which returns the XML with a QR code | Applied by the seller's e-invoicing solution with its own CSID |
| Delivery to the buyer | After clearance | Immediately, printed, or electronically if both parties agree |
| Credit and debit notes | Cleared like the invoice | Reported within 24 hours like the invoice |
When should you issue a simplified invoice instead?
ZATCA's guideline: a simplified tax invoice is generally for consumer sales, at any value, and optional between businesses only below SAR 1,000. Otherwise, issue a tax invoice with the buyer's details.
- Point-of-sale purchase by an individual: simplified tax invoice, handed over immediately.
- Supply to a business of SAR 1,000 or more: tax invoice with the buyer's details; in the integration phase it is cleared before it reaches the buyer.
- Supply to a business below SAR 1,000: either type.
- Private education or private healthcare supplied to a citizen: in the integration phase, its simplified invoice must carry the buyer's name and National ID.
A reading of ZATCA's texts, not tax advice. For special cases, check with ZATCA on 19993 or at zatca.gov.sa.
What data must each invoice show?
Annex 2 of the Implementation Resolution lists each type's mandatory fields; the table shows the main ones, not the full list. Some date from 4 December 2021, others from the integration phase.
| Field | Tax invoice | Simplified tax invoice |
|---|---|---|
| Document title ('Tax Invoice' or 'Simplified Tax Invoice'), sequential number, issue date and time, seller name, address and VAT number | Since 4 Dec 2021 | Since 4 Dec 2021 |
| UUID, previous invoice hash, invoice counter, and an additional seller ID such as the commercial registration | From the integration phase | From the integration phase |
| Buyer name and address | Since 4 Dec 2021 | Name conditional, address optional |
| Buyer VAT number | Conditional; not mandatory for exports | Not one of its buyer fields |
| Additional ID for a buyer not registered for VAT (such as National ID, Iqama or CR) | Conditional in the integration phase | National ID only for private education or private healthcare supplied to citizens |
| QR code | From the integration phase | Since 4 Dec 2021 |
Under the violations guide, each missing mandatory field counts separately: a warning, then SAR 1,000 per field.
What is the difference between clearance and reporting?
In the integration phase each tax invoice goes to ZATCA in real time; ZATCA validates it and stamps only compliant invoices, before they reach the buyer. Clearance is a condition for the invoice to be legal and valid, and does not apply to simplified invoices.
A simplified invoice and its notes carry the seller's own stamp and are uploaded to Fatoora within 24 hours of generation; ZATCA replies with an API acknowledgement. From a date ZATCA will announce in a later resolution, input VAT can be claimed only on e-invoices and notes that were cleared or reported under the integration-phase requirements.
- Format in the integration phase: XML is mandatory for generating and sending; PDF/A-3 with embedded XML is an optional copy for the customer, and ZATCA receives XML only. Phase 1 requires no specific format.
- QR code: 5 fields in Phase 1 for simplified invoices; 9 tags in Phase 2, adding the invoice hash, signature and public key, plus the ZATCA CA's signature of the stamp on simplified invoices.
- Cannot report a consumer sale within 24 hours: notify ZATCA through the dedicated form on its website, then report once the connection is restored.
- Clearance fails on a B2B sale: a tax invoice may be issued within 15 days of the end of the month of supply. Uncleared invoices are not eligible for VAT deduction, so keep logs of your attempts.
Can a tax invoice be cancelled after it is issued?
Not by deleting or editing it. ZATCA's violations guide treats deleting or modifying an e-invoice or its note after issuance as a violation, and the Implementation Resolution lists altering or deleting generated invoices or logs as a prohibited function of e-invoicing software.
An issued invoice is corrected with a credit or debit note linked to it. In the integration phase, notes follow their invoice's path: cleared for tax invoices, reported within 24 hours for simplified ones. Not issuing a note, or not giving it to the customer, is also a violation.
Which fines relate to these invoices?
Under ZATCA's simplified guide to classifying general VAT violations (second edition, May 2024), each violation below starts with a warning and 30 to 60 days to fix it, then the fine rises with each repeat within 12 months of the last detection. See the e-invoicing violations guide.
| Violation | 1st time | 2nd time | After the 6th |
|---|---|---|---|
| Not issuing tax invoices as the Law and Regulation require (no. 1) | Warning | SAR 10,000 | SAR 50,000 |
| Not issuing a credit or debit note, or not giving it to the customer (no. 2) | Warning | SAR 5,000 | SAR 40,000 |
| Missing required data, per field (no. 3) | Warning | SAR 1,000 | SAR 40,000 |
| Wrong tax calculation on invoices to the final consumer (no. 6) | Warning | SAR 1,000 | SAR 40,000 |
| Deleting or modifying an e-invoice or note after issuance (no. 12) | Warning | SAR 5,000 | SAR 40,000 |
| No QR code (no. 15) | Warning | SAR 1,000 | SAR 40,000 |
Figures as read from ZATCA's table on 28 September 2026; check ZATCA for later amendments.
How does Xrero issue both types?
Xrero sends tax invoices from sales for clearance before the customer receives them, and reports point-of-sale simplified invoices to ZATCA from the till. Counters never reset, cleared invoices cannot be edited or deleted, corrections are credit or debit notes referencing the original, every PDF carries the QR code, and an automatic retry queue resends what failed.
Xrero was validated on ZATCA's developer sandbox on 18 September 2026, and on 28 September 2026 a Saudi establishment's device was onboarded on the Fatoora simulation environment through Xrero. The application to be listed in ZATCA's solution-provider directory was submitted on 28 September 2026 and is under review; the list is indicative, and any compliant solution may be used, listed or not. See e-invoicing, pricing or contact us.
Frequently asked questions
What is the difference between a tax invoice and a simplified tax invoice?
A tax invoice is generally for B2B, shows the buyer's name and address and, in the integration phase, is cleared before delivery. A simplified invoice is generally for consumers, usually has no buyer details and, in the integration phase, carries the seller's own stamp and is reported within 24 hours.
When should I issue a simplified tax invoice instead of a tax invoice?
For consumer sales, at any value. Between businesses it is optional only when the value of the supply is below SAR 1,000; otherwise a tax invoice with the buyer's details is required.
Does a simplified invoice need the buyer's VAT number?
The buyer VAT number is not among the simplified invoice's buyer fields: those are the name (conditional), address (optional) and National ID for private education or private healthcare supplied to citizens. On a tax invoice the buyer VAT number is conditional, and not mandatory for exports.
Can a tax invoice be cancelled after it is issued?
Not by deleting or editing it; that is a violation starting with a warning, then SAR 5,000. A mistake is corrected with a credit or debit note which, in the integration phase, follows the invoice's path: clearance for a tax invoice, reporting within 24 hours for a simplified invoice.
What data is mandatory on a tax invoice?
Among the mandatory data since 4 December 2021: the title 'Tax Invoice', a sequential number, issue date and time, seller name, address and VAT number, and buyer name and address. The integration phase adds a UUID, previous invoice hash, invoice counter, additional seller ID and the QR code. Annex 2 of the Implementation Resolution has the full list.
What if I cannot report a simplified invoice within 24 hours?
Notify ZATCA through the dedicated form on its website, then report the invoices once the connection is restored.