Simplified tax invoice vs tax invoice in Saudi Arabia: which one to issue
A simplified tax invoice is the short form: allowed for supplies under SAR 1,000 and for any sale to a consumer. Everything else needs a full tax invoice with the buyer’s details — and under e-invoicing the two travel to ZATCA differently.
The short answer
In Saudi Arabia every taxable supply needs a tax invoice, and it comes in two forms. A simplified tax invoice may be issued when the supply is worth less than SAR 1,000, or when the buyer is a private individual who is not registered for VAT — whatever the amount. In every other case — typically a sale of SAR 1,000 or more to a business — the seller issues a full tax invoice (sometimes called a standard tax invoice), which identifies the buyer as well as the seller.
This is general information drawn from ZATCA’s “Guideline for Tax Invoicing and Records under VAT Provisions” (Version 3, May 2026) and its e-invoicing guidelines. ZATCA’s published rules, in Arabic, are the authority.
Side by side
| Tax invoice | Simplified tax invoice | |
|---|---|---|
| Typically used for | Sales to businesses (B2B) | Sales to consumers (B2C) and small sales |
| When it may be used | Any taxable supply | Supplies under SAR 1,000, or any supply to a person not registered for VAT |
| Buyer details | Name, address and VAT number (or another ID if not registered) | Not required |
| Line detail | Each line: description, unit price, quantity, discount, VAT rate and amount | What was supplied and the price |
| Title on the document | “Tax Invoice” | “Simplified Tax Invoice” |
| E-invoicing, Phase 2 | Cleared by ZATCA before it goes to the buyer | Reported to ZATCA within 24 hours |
When you may issue a simplified tax invoice
ZATCA’s guideline names two cases. Outside them, issue a full tax invoice.
- The supply is worth less than SAR 1,000 — whoever the buyer is, a business included.
- The buyer is a natural person who is not subject to VAT — a member of the public — whatever the value. A SAR 4,000 sofa sold to a household can go on a simplified invoice.
A simplified invoice still counts for input VAT
A common belief is that a business cannot reclaim VAT on a simplified invoice. ZATCA’s guideline says the opposite: a buyer needs a valid tax invoice to deduct input tax, and that “may be a simplified tax invoice”. What a simplified invoice lacks is the buyer’s details, which is why a business buying SAR 1,000 or more is given a full tax invoice instead.
Example — which invoice for which sale
- Café sale to a customer, SAR 46.00 incl. VAT
- Simplified
- Office supplies to a company, SAR 690.00 incl. VAT
- Simplified allowed
- Furniture to a household, SAR 4,600.00 incl. VAT
- Simplified allowed
- Fit-out work for a company, SAR 23,000.00 incl. VAT
- Tax invoice
Illustrative sales, not real businesses. The second line may also be issued as a full tax invoice — the seller can always give more than the minimum.
What a simplified tax invoice must show
Minimum content (ZATCA guideline §4.3.2)
- The title “Simplified Tax Invoice”.
- The date it was issued.
- The supplier’s name, address and VAT registration number.
- What goods or services were supplied.
- The price payable.
- The VAT — either the amount in Saudi riyals, or a clear statement that the price includes VAT at the standard 15% rate.
Example — a SAR 46.00 café receipt
- Price including VAT
- SAR 46.00
- VAT at 15% (46.00 × 15 ÷ 115)
- SAR 6.00
- Price before VAT
- SAR 40.00
Showing the SAR 6.00 VAT line meets the requirement in either reading of it. How to calculate VAT explains taking VAT out of an inclusive price.
What a full tax invoice must show
Everything above, with more detail on the document, the buyer and every line. ZATCA’s guideline (§4.2.3) lists:
The document and the parties
- The title “Tax Invoice”, the issue date and time, and the date of supply if it differs.
- A sequential number that identifies the invoice — see invoice number format.
- The supplier’s legal name, address in Saudi Arabia and VAT registration number.
- The buyer’s name, address and VAT number — or, if the buyer is not registered, another identifier such as a commercial registration, national ID, residency or passport number.
The lines and the totals
- For each line: description, unit price, quantity, any discount, the amount before VAT, the VAT rate, the VAT amount and the line total including VAT.
- The taxable amount by rate, the VAT total in Saudi riyals, and the invoice total including VAT.
- A statement when the invoice is issued on someone else’s behalf, or when a special treatment applies (deemed supply, export, summary invoice).
Currency and language
Prices may be in any currency, but the VAT must also be stated in Saudi riyals, converted at the Saudi Central Bank’s daily rate. Both kinds of invoice must be issued in Arabic, and may carry another language beside it; ZATCA treats the Arabic as the authoritative text and allows Latin characters for proper names such as brands. How to make a bilingual Arabic–English invoice shows a layout that does both.
Timing, e-invoicing and the QR code
When each must be issued
A simplified tax invoice is issued on the day of the supply, or the day payment is received if that comes first. A full tax invoice may be issued up to 15 days after the end of the month in which the supply happened.
Clearance and reporting under Phase 2
Once a business is in ZATCA’s Phase 2 (integration) wave, its invoicing system talks to ZATCA’s FATOORA platform — differently for each type. A tax invoice is cleared: sent to ZATCA, validated and stamped before it may be given to the buyer. A simplified tax invoice is reported: given to the customer straight away and sent to ZATCA within 24 hours.
The QR code
Under Phase 1, ZATCA made the QR code mandatory on simplified tax invoices and optional on tax invoices; its current guideline expects it on tax invoices too. The ZATCA QR code explained shows what it contains, and the ZATCA QR code scanner reads one back from a photo or PDF.
Choosing the type in BuzPulse
The Invoice Generator asks you to choose: Tax invoice (B2B, standard) or Simplified tax invoice (B2C). It never decides for you from the customer’s VAT number. The printed title follows the choice in English and Arabic — Tax Invoice / فاتورة ضريبية or Simplified Tax Invoice / فاتورة ضريبية مبسطة.
With a Saudi VAT number on your business profile, issued invoices of either type carry the Phase 1 QR code; on a simplified invoice it is required, so the app warns you if something stops it being added. Credit notes against simplified invoices carry it as well.
Frequently asked questions
Can I issue a simplified tax invoice to a business?
Yes, when the supply is worth less than SAR 1,000. From SAR 1,000 upwards, a sale to a business needs a full tax invoice with the buyer’s details.
Is there a maximum amount for a simplified tax invoice to a consumer?
No. For a natural person who is not registered for VAT, ZATCA’s guideline allows a simplified tax invoice whatever the value.
Can a business reclaim VAT on a simplified tax invoice?
ZATCA’s guideline says a buyer needs a valid tax invoice to deduct input tax and that this may be a simplified tax invoice. Your accountant can confirm how it applies to your purchases.
Does a simplified tax invoice need the VAT amount?
It needs either the VAT amount in Saudi riyals or a clear statement that the price includes VAT at 15%. Showing the amount is the clearer choice.
What is the Arabic for simplified tax invoice?
فاتورة ضريبية مبسطة. A tax invoice is فاتورة ضريبية.
Does a simplified tax invoice need a QR code?
Yes — ZATCA made it mandatory on simplified tax invoices from the start of e-invoicing in December 2021.
The tools behind this
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About the author
Naeem Ahmed builds and runs BuzPulse. These guides describe tools he has built, and they describe how those tools actually behave — including where they stop.
Corrections and questions: naeem@buzpulse.com
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