Mandatory Fields to Be Printed on ZATCA Compliant E-Invoices
As part of Saudi Arabia’s e-invoicing regulations introduced by the Zakat, Tax, and Customs Authority (ZATCA), businesses are required to issue electronic invoices that include specific mandatory fields. These fields are crucial for ensuring that each invoice complies with local VAT laws and can be easily processed by ZATCA’s system. Whether you are issuing a standard Tax Invoice or a Simplified Invoice, these fields must be present.
Here’s a breakdown of the key information that must be included on all ZATCA-compliant e-invoices:
1. Invoice Header Information
- Supplier’s Name: The legal name of the business issuing the invoice.
- Taxpayer Identification Number (TIN): The unique Taxpayer ID number of the supplier.
- Invoice Date: The date the invoice is issued. This must be recorded in the Gregorian calendar.
- Invoice Number: A unique identifier for the invoice. This number must be sequential and cannot be reused.
- Buyer’s TIN: If the buyer is a VAT-registered entity, their TIN must also be included on the invoice.
2. Line Item Details
- Description of Goods or Services: A detailed description of the goods or services being invoiced.
- Quantity and Unit Price: The amount of goods or services provided and the corresponding price per unit.
- Total Amount per Line Item: The total amount for each line item, including VAT.
3. VAT Details
- Applicable VAT Rate: The VAT rate applicable to each line item, typically 15% for most taxable goods and services.
- Total VAT Amount: The total VAT amount calculated for the invoice.
4. Invoice Total
- Subtotal: The total of all line items before tax.
- Total Amount Including VAT: The grand total of the invoice, including VAT.
5. Digital Signature (Mandatory for Phase 2)
- Digital Signature: In Phase 2 of ZATCA’s e-invoicing system, which began in January 2023, a digital signature is required to authenticate the invoice. This ensures the integrity of the invoice and that it has not been tampered with after issuance.
6. QR Code (Mandatory for Simplified Invoices)
- For Simplified Tax Invoices (used for B2C transactions), a QR code must be included. The QR code allows ZATCA and customers to quickly verify the validity of the invoice and access relevant details when scanned. It encodes critical data such as the supplier’s name, TIN, invoice date, and total amounts.
7. Unique Invoice Identifier (UUID)
- UUID: Each invoice must have a unique identifier, often called a UUID (Universally Unique Identifier). This is particularly important in Phase 2, where real-time reporting to ZATCA is required. The UUID helps to track the invoice within the ZATCA system.
8. Supplier’s Address and Contact Information
- Business Address: The physical address of the supplier must be clearly stated.
- Contact Information: A phone number or email where the buyer can reach the supplier.
9. Tax Invoice Label
- Invoice Type: The invoice must be clearly labeled as either a Tax Invoice or Simplified Tax Invoice to distinguish between B2B and B2C transactions.
Phase 2 Compliance: Integration and Reporting
In Phase 2 of the ZATCA e-invoicing initiative, businesses are required to integrate their e-invoicing systems directly with ZATCA’s platform to enable real-time reporting and validation of invoices. This phase emphasizes compliance with the digital signature and submission of invoice data in XML format, along with printed copies if needed for customer presentation.
Non-compliance Penalties
Failure to include any of the mandatory fields or comply with ZATCA’s e-invoicing requirements can result in penalties, including fines and potential suspension of business operations. Therefore, it is critical for businesses to ensure their invoicing systems meet all the regulatory requirements outlined by ZATCA.
Conclusion
To comply with Saudi Arabia’s ZATCA e-invoicing regulations, businesses must ensure that all mandatory fields are present on their e-invoices, including essential tax, business, and item-specific information. By adhering to these guidelines and leveraging compliant e-invoicing systems, businesses can avoid penalties and ensure smooth tax reporting, helping to contribute to the Kingdom’s larger vision of transparency and digital transformation.
For the latest updates on e-invoicing requirements, businesses can visit the official ZATCA website or consult with certified tax professionals.