Aqid ERPAn invoice with no VAT on it
Not every seller charges VAT. A business below the registration threshold, a freelancer who has not registered voluntarily, or a supplier of exempt services (residential rent, most financial services) issues a plain invoice: what was supplied, to whom, for how much, and when it is due. It must not be titled "Tax Invoice" and must not show a VAT line, because only a registered person may charge the tax.
- A number and a date, and the due date agreed with the customer.
- The seller's name, address and commercial registration (or freelance licence) number.
- The customer's name and address.
- Lines with description, quantity, unit price and amount; a total.
- Bank details and payment terms, so the customer can pay without asking.
When this stops being enough
Registration becomes mandatory once taxable supplies in any twelve months exceed SAR 375,000, and is available voluntarily from SAR 187,500. From the registration date every invoice is a tax invoice with VAT, and the invoicing moves into e-invoicing's rules. Watch the rolling twelve-month figure, not the calendar year: crossing the line mid-year is common and the thirty-day window to register is short.