Quotation

Meaning

A quotation (عرض سعر) sets out what the seller will supply, at what price, on what terms, and until when the offer stands. It shows VAT per line so the customer knows the final amount and the later invoice matches, but it is not a tax invoice: it carries no QR code, creates no VAT and is not reported to ZATCA. Accepted within its validity, it becomes the sales order and then the source of the tax invoice, with the same lines and prices.

A proforma invoice is a quotation dressed as an invoice, used to obtain an advance payment or a letter of credit; it is no more a tax invoice than the quotation is. An advance actually received against either is a taxable event, because VAT is due at the earliest of supply, invoice and payment, so it must be invoiced.

Also called: quote · price quotation · proforma · عرض السعر

Example

Al Noor sends quotation QT-2026-0031 for 9,110.00 plus 1,366.50 VAT, valid to 12 November. The customer signs it on 5 November; the quotation converts to an order, the work is delivered, and tax invoice INV-2026-0001 is issued with the same three lines.