Tax Invoice vs Simplified Tax Invoice in Saudi Arabia | Hespah LLC [Skip to main content](#main-content)[![Hespah LLC](https://centralcdn.hespah.com/home_logolight_file2png.webp)](/en)Search More [Home](/en) [Learning Hub](/en/courses) [About us](https://hespah.com/who-we-are) [Blog](/en/blog) [Contact Us](/en/contact) Login[New Account](/en/register) 1. [Home](/en) / 2. [Blog](/en/blog) / 3. Tax Invoice vs Simplified Tax Invoice in Saudi Arabia Tax Invoice vs Simplified Tax Invoice in Saudi Arabia ===================================================== 2026-09-30 / 3 weeks ago An accountant who issues a full tax invoice for every till transaction in a retail shop is wasting hours. A colleague who settles for a simplified invoice on a government supply contract is exposing the business to assessment. The choice is not a commercial preference, because the Implementing Regulations settled it with two tests: who receives the supply, and what it is worth. What is the difference between a standard and a simplified tax invoice? ----------------------------------------------------------------------- A standard tax invoice normally goes from one business to another, or to a government entity, and it carries the supplier and customer details in full. A simplified tax invoice, by contrast, goes to a non-taxable individual, or covers a supply worth less than one thousand riyals, since only a minimum set of fields is required. The test is therefore the recipient and the value, not the supplier's preference. Wherever the phrase "tax invoice" appears in the Law or in the Implementing Regulations it means the standard type, unless the context says otherwise. Even so, the underlying obligation is identical in both cases: every taxable supply needs an invoice, whatever the commercial habits of the sector. ![Standard versus simplified tax invoice: recipient, the 1,000 SAR limit, customer data, issue timing, and clearance versus 24-hour reporting](https://centralcdn.hespah.com/uploads/emils/17908076840.jpeg "Standard versus simplified tax invoice: recipient, the 1,000 SAR limit, customer data, issue timing, and clearance versus 24-hour reporting") When is a standard tax invoice mandatory? ----------------------------------------- The Regulations require a standard invoice for every supply worth more than one thousand (1000) riyals, and likewise for every taxable supply made to another business or to a government entity. However, some cases are not affected by size at all. For example, exporting goods from the Kingdom requires a standard invoice regardless of the value of the supply or the status of the customer, and the same applies to intra-GCC supplies. A deemed supply — giving a customer goods for no consideration, for instance — also requires an invoice, but that invoice never reaches the customer, since it stays in the records for audit purposes and the recipient cannot deduct input tax on it. On the other hand, no tax invoice is issued at all for exempt supplies, nor for supplies outside the scope of VAT, such as supplies between members of a single tax group. When is a simplified invoice enough? ------------------------------------ The Implementing Regulations set out two cases: 1. First, a supply of goods or services worth less than one thousand (1000) riyals. 2. Second, any supply to a non-taxable natural person, whatever its value. Note the fine distinction: the thousand-riyal threshold applies to business-to-business transactions, and it is a permission rather than an obligation. In other words, a supplier in a transaction below one thousand riyals chooses between a simplified invoice and a fully compliant standard one. Sales to individuals, meanwhile, carry no ceiling at all. Besides that, there is a detail many people miss: local zero-rated supplies, and services provided to a customer not resident in the GCC, may be documented with a simplified invoice provided its requirements are met. Exports alone stay outside that permission. For the distinction between zero-rated and exempt, see [our article on zero-rated and exempt supplies](https://hespah.com/en/blog/zero-rated-vs-exempt-vat). Fields required on a standard tax invoice ----------------------------------------- This list is the statutory minimum, because the Regulations do not stop you from adding further commercial detail on top of it: 1. **Document title:** the words "tax invoice", explicitly. 2. **Dates:** the issue date in YYYY-MM-DD format with the time as HH:mm:ss, plus the date of supply where it differs from the issue date. 3. **Sequential number** that distinguishes the invoice from every other one. 4. **Supplier details:** the legal name as shown on the registration certificate, the national address inside the Kingdom, and the VAT registration number. 5. **Customer details:** name, address and VAT number. Where the customer is not registered, one of the alternative identifiers is used, in this order: tax identification number, commercial registration, Ministry of Municipal and Rural Affairs licence, Ministry of Human Resources and Social Development licence, 700 number, General Investment Authority licence, national ID, GCC ID, iqama number, then passport number. 6. **Line-level supply details:** description, unit price, quantity, discounts, total before tax, tax rate, tax amount, and total including tax. 7. **Price and tax summary:** discounts on the invoice total, the taxable amount, the tax amount in Saudi riyals, and the invoice total including tax. 8. **Self-billing statement** where the customer or a third party issues the invoice on the supplier's behalf. 9. **Special tax treatment statement** where tax is not charged at the standard rate: deemed supply, export, or summary invoice. 10. **QR code** — mandatory on the standard tax invoice as of January 2023. Fields required on a simplified tax invoice ------------------------------------------- Five items only: the issue date; the supplier's name, address and tax number; a description of the goods or services supplied; the consideration payable; then the tax. The last item accepts two formats, since you may either show the tax due in Saudi riyals, or write a clear statement that the consideration payable includes VAT at the standard rate of 15%. For example, the official guideline illustrates both formats with a store selling retail food products for 90 riyals plus 13.50 riyals in tax. It may show the tax amount of 13.50 riyals, or show the total of 103.50 riyals with an explicit note that the figure includes VAT. Even so, nothing stops a supplier from issuing a fully compliant standard invoice where a simplified one would do. ![Mandatory invoice data: ten fields on a standard tax invoice, including the QR code and customer details, and five items on a simplified invoice](https://centralcdn.hespah.com/uploads/emils/17908076851.jpeg "Mandatory invoice data: ten fields on a standard tax invoice, including the QR code and customer details, and five items on a simplified invoice") Standard versus simplified tax invoice at a glance -------------------------------------------------- Aspect Standard tax invoice Simplified tax invoice Usual recipient Business or government entity Non-taxable natural person Value threshold Mandatory above 1000 riyals Permitted below 1000 riyals, no ceiling for individuals Customer details Required in full Not required Mandatory fields Ten main groups Five items Issue deadline By the fifteenth day of the month following the supply On supply or on receipt of consideration, whichever is earlier Integration phase Cleared by the Fatoora platform before sharing Reported to the Authority within 24 hours of issue File format XML or PDF/A-3 with embedded XML XML or PDF/A-3 with embedded XML Timing: the deadline that gets missed ------------------------------------- The standard tax invoice has a clear deadline: fifteen days from the month following the month in which the supply took place. The simplified invoice, by contrast, has no practical grace period, since it is issued on the date of supply or the date consideration is received in whole or in part, whichever is earlier. The one exception is supplies of financial services, which take the same fifteen-day window. The issue date cannot be amended once the invoice has been issued. Therefore issuing an invoice before the actual date of supply obliges you to declare the tax as output tax in the period in which the invoice was issued, even if no money has arrived and the supply has not yet happened. Where you receive an advance payment, however, the supply counts as having occurred to the extent of the amount paid, and consequently you must issue an invoice within fifteen days of the end of the month in which you received it. E-invoicing: clearance against the 24-hour report ------------------------------------------------- This is where the gap between the two types widens further than most people expect. In the integration phase the standard tax invoice is sent in XML to the Fatoora platform for clearance, where the platform adds the cryptographic stamp and the QR code once the validations pass, then returns the cleared copy. Consequently the invoice does not reach the buyer before the Authority has cleared it. The simplified invoice is the exact opposite, because clearance does not apply to it. Your e-invoicing solution is the one that stamps the XML and embeds the QR code carrying the nine tags in TLV base64 encoding, a printed copy then goes to the buyer directly, and the invoice is reported to the platform within no more than 24 hours of issue. The reason is purely practical: a retailer with dozens of cash registers cannot wait for the Authority to answer at every sale. For the full picture, see [our article on phase two of e-invoicing](https://hespah.com/en/blog/e-invoicing-phase-2-saudi-arabia). Recurring mistakes on the tax invoice ------------------------------------- **Language.** All invoices must be issued in Arabic, while a second language may sit alongside it. The Arabic content is the authoritative version, whereas anything else counts as a translation. Even so, proper names of international origin are accepted in Latin script. **Currency.** Monetary values may be stated in any currency, but the tax amount itself must be shown in Saudi riyals. Therefore, when another currency is used, the amount is converted at the daily rate set by the Saudi Central Bank on the date the tax becomes due. **Rounding.** The tax amount is rounded to the nearest halala, and the rounded figures on the invoice are the same ones that feed into the [VAT return](https://hespah.com/en/blog/vat-return-filing-saudi-arabia). Any drift between the two produces a difference that surfaces on audit. **Summary invoices.** One invoice may cover all supplies to the same customer over a period not exceeding one calendar month. However, a supplier who issues a summary may not also issue separate invoices for the same supplies. **Invoicing before registration.** The gravest error of all. A person not registered for VAT may not issue a tax invoice, and anyone who issues a document intended to be used as a tax invoice, or who seeks to collect any amount as VAT, faces a penalty of up to 100,000 riyals under Article 44 of the Law. Therefore review the [VAT registration conditions](https://hespah.com/en/blog/vat-registration-saudi-arabia) before issuing a first invoice. Frequently asked questions about the tax invoice ------------------------------------------------ ### Can a simplified invoice be issued to another business? Yes, where the taxable supply is worth less than one thousand riyals. It is an option for the supplier rather than an obligation, since a fully compliant standard invoice stays available in the same situation. ### What goes in the customer field if the buyer is not VAT registered? One of the approved alternative identifiers is entered, following the order set out in the guideline: it begins with the tax identification number and ends with the passport number. The field consists of the identifier type together with its number. ### Can a tax invoice be issued in English only? No. The Regulations require invoices to be issued in Arabic, while permitting another language alongside. Therefore the Arabic text stays the reference in case of conflict. ### Does a simplified invoice need clearance from the Authority? No, because clearance does not apply to the simplified tax invoice. Consequently the only obligation is reporting it to the Fatoora platform within 24 hours of issue. ### When do I issue an invoice for an advance payment? Within fifteen days of the end of the month in which you received the payment, and only to the extent of the consideration received. Sources ------- - [Guideline on Tax Invoices and Record Keeping under the VAT Provisions](https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/Guideline-for-Tax-Invoicing-and-Records-under-VAT-Provisions.pdf) — Zakat, Tax and Customs Authority, third edition, May 2026. - [Detailed E-Invoicing Guideline](https://zatca.gov.sa/ar/E-Invoicing/Introduction/Guidelines/Documents/E-Invoicing-Detailed-Guidelines.pdf) — Zakat, Tax and Customs Authority, second edition, May 2023. At Hespah Academy we cover this ground practically in [our tax and accounting courses](https://hespah.com/en/courses), from building the invoice through to tying it back to the return. *This article is for general information only and does not replace the official sources or advice from a specialist before taking any action.* Articles you might like ----------------------- [![Nitaqat Wage Floor Rises to SAR 5,000 Then SAR 6,000](https://centralcdn.hespah.com/265/conversions/cover-sm.webp)2026-10-26 ### Nitaqat Wage Floor Rises to SAR 5,000 Then SAR 6,000 The Nitaqat wage floor rises to SAR 5,000 after six months and SAR 6,000 after twelve, by royal directive of 25 October](/en/blog/nitaqat-wage-floor-2026)[![UAE e-Invoicing: the Provider Deadline Falls on 30 October](https://centralcdn.hespah.com/263/conversions/cover-sm.webp)2026-10-26 ### UAE e-Invoicing: the Provider Deadline Falls on 30 October E-invoicing in the UAE: appoint an accredited service provider by 30 October 2026 if revenues reach AED 50 million; go l](/en/blog/uae-einvoicing-asp-deadline)[![Reclaiming VAT on Real Estate Supplies: a 30-Day Window](https://centralcdn.hespah.com/181/conversions/cover-sm.webp)2026-10-14 ### Reclaiming VAT on Real Estate Supplies: a 30-Day Window ZATCA Board Resolution 10-04-26, published 13 October 2026, opens a VAT refund on real estate supplies made by individua](/en/blog/vat-real-estate-supplies-refund)[![ZATCA Objection: The Full Appeal Path, Step by Step](https://centralcdn.hespah.com/138/conversions/cover-sm.webp)2026-10-06 ### ZATCA Objection: The Full Appeal Path, Step by Step A ZATCA objection runs on deadlines: 60 days to file a grievance, 90 for ZATCA to rule, 30 to settle or litigate. 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