How is a ZATCA simplified tax invoice different from a standard one?

A Simplified Tax Invoice generally applies to B2C transactions and contains fewer mandatory fields than a standard Tax Invoice. It normally does not require the same level of buyer identification as a standard B2B Tax Invoice. ZATCA also allows Simplified Tax Invoices to be used in certain B2B situations, including supplies below SAR 1,000, subject to the applicable rules.

The processing model is also different in Phase 2. Standard Tax Invoices are submitted to FATOORA for clearance, while Simplified Tax Invoices are submitted for reporting within 24 hours of issuance. Simplified Tax Invoices must also include the required Phase 2 QR code.

The distinction should therefore be reflected in the ERP or billing system when determining invoice type, required buyer information, transaction indicators and the applicable ZATCA submission process.

Key points

• Standard Tax Invoices are generally used for B2B transactions.
• Simplified Tax Invoices are generally used for B2C transactions.
• Simplified invoices contain fewer mandatory fields.
• Buyer information is generally less extensive on simplified invoices.
• Standard invoices are subject to ZATCA clearance.
• Simplified invoices are reported to ZATCA within 24 hours.
• Simplified invoices require the applicable Phase 2 QR code.