Tax invoice

Meaning

A tax invoice (فاتورة ضريبية) is the document that makes VAT deductible for the buyer and accountable for the seller. The VAT Implementing Regulations list its content: the words "tax invoice", a sequential number, the issue date and date of supply, the seller's name, address and VAT number, the buyer's name, address and VAT number, each line's description, quantity, unit price, taxable amount, rate and VAT, the totals, and the QR code that e-invoicing added.

It must be issued no later than the fifteenth of the month after the supply, and VAT becomes due at the earliest of supply, invoice and payment. Once issued it is never edited: a credit note or a debit note corrects it. From e-invoicing Phase 2 it is an XML document cleared with ZATCA before the buyer receives it.

Also called: standard tax invoice · VAT invoice · B2B invoice

Example

Al Noor invoices Golden Customer Co. for 9,110.00 of services. The tax invoice shows three lines, 1,366.50 of VAT at 15 percent and a total of 10,476.50; Golden Customer deducts the 1,366.50 as input VAT in its next return, and Al Noor pays it as output VAT.