What is the difference between clearance and reporting under ZATCA?

Clearance and reporting apply to different types of e-invoices.

Clearance applies to standard Tax Invoices, generally used for B2B transactions. The invoice is submitted to ZATCA through the integrated solution, where ZATCA validates it against the applicable requirements. If it passes the required checks, ZATCA applies its cryptographic stamp and returns the cleared invoice information. The cleared invoice can then be issued to the buyer.

Reporting applies to Simplified Tax Invoices, generally used for B2C transactions. These invoices are generated and issued by the taxpayer first, then submitted to the Fatoora platform for reporting within 24 hours. ZATCA validates the submitted document and returns an acceptance, warning, or rejection response.

The key difference is therefore that clearance happens before a standard invoice is finalized for the buyer, while reporting happens after a simplified invoice is issued.

Key points

• Standard Tax Invoice = Clearance.
• Simplified Tax Invoice = Reporting.
• Clearance is required before issuing the cleared standard invoice.
• Simplified invoices must be reported within 24 hours.
• ZATCA applies its cryptographic stamp to cleared standard invoices.