How does self-billing work under ZATCA e-invoicing?

Self-billing is an arrangement in which the buyer issues the invoice on behalf of the supplier. Under ZATCA's e-invoicing specifications, the self-billing indicator applies to B2B transactions. The invoice must clearly identify that it is self-billed and comply with the applicable Saudi VAT and e-invoicing requirements.

For Phase 2 standard invoices, the buyer submits the self-billed document to FATOORA for clearance. ZATCA's technical guidance states that the buyer and supplier must have a self-billing agreement approved by ZATCA. The buyer must therefore ensure that the arrangement and its invoicing system meet the applicable requirements before issuing invoices under this model.

Key points

• Self-billing means the buyer issues an invoice on behalf of the supplier.
• It applies to B2B transactions under ZATCA's specifications.
• The invoice must carry the appropriate self-billing indicator.
• The buyer and supplier must have the required ZATCA-approved agreement.
• Standard self-billed invoices are submitted by the buyer for clearance.
• The invoice must comply with the relevant VAT and technical requirements.