Simplified tax invoice

Meaning

A simplified tax invoice (فاتورة ضريبية مبسطة) is what a VAT-registered seller issues to a customer who is not buying for a registered business, and may issue for any supply under SAR 1,000. It carries the seller's name, address and VAT number, the date and time, each line with VAT or VAT-inclusive prices with the VAT total shown, the total, and a QR code. The buyer's details are not required.

Under e-invoicing Phase 2 it is given to the customer first and reported to ZATCA within twenty-four hours, which is why a point of sale in a Phase 2 wave must be a compliant system and why the QR on the receipt is signed. A registered business that receives one should ask for a standard tax invoice in its name if it wants to deduct the VAT.

Also called: B2C invoice · till receipt · simplified invoice

Example

A stationery shop sells two chairs and five boxes of paper to a walk-in customer for 1,325.00 plus 198.75 VAT. The receipt is a simplified tax invoice: shop details, lines, VAT, total 1,523.75 and a QR code the customer can scan. The shop's system reports it to ZATCA by the next day.