Tax Invoice Requirements: Every Mandatory Field Explained

The date on which the tax invoice is created and issued. This establishes the timing of the document and determines when the supplier’s obligation to issue has been met. It is distinct from the date of supply, which is a separate field.

Common error: Printing the date only in Hijri format without a Gregorian equivalent. Both formats are widely used in Saudi commerce; while the Regulations do not prescribe one format, ensuring clarity avoids disputes.

A sequential number that uniquely identifies the tax invoice. The numbering must follow a logical, unbroken sequence. Gaps in sequence numbers, duplicate numbers, or numbers that cannot be traced back to a transaction register are red flags in ZATCA audit.

Common error: Operating multiple invoice series simultaneously without clearly distinguishing them — causing sequential gaps within each series that appear as missing invoices on audit.

The ZATCA-issued Tax Identification Number of the supplier. This is the 15-digit number provided upon VAT registration. It must appear on every tax invoice without exception.

Common error: Using the commercial registration number, national ID, or any other identifier instead of the TIN. These are not substitutes.

This field is required only where the customer is required to self-account for tax on the supply under the reverse charge mechanism. In that case, the invoice must state the customer’s TIN and include a clear statement that the customer must account for the tax.

For standard B2B domestic supplies where the supplier charges the VAT, this field does not apply. For cross-border services where the RCM applies, it is mandatory.

Both parties must be identified by name and address. For corporate entities, the registered name and registered address should be used. An invoice that identifies the supplier but uses only a vague description for the customer — “cash” or “retail customer” — does not satisfy the requirement for B2B supplies.

Common error: Abbreviated or truncated names; PO Box addresses used where a physical or registered address is available.

The invoice must describe what was actually supplied. For goods: quantity (number, weight, volume) and a description identifying the product. For services: the nature and scope of the service performed — the work actually done, not a generic label like “consultancy services” or “professional fees.”

Common error: Vague service descriptions that do not identify what was done. ZATCA will challenge “advisory fees” billed without specifying the subject matter, especially for high-value transactions.

The date on which the supply actually took place, where this differs from the date the invoice was issued. If the invoice is issued on the same day as the supply, this field is satisfied by the date of issue. Where there is a gap — for example, an invoice issued in January for services completed in December — the date of supply must appear separately.

This field is critical because the date of supply determines the VAT period in which output tax is due. An invoice that omits this field — when it differs — creates a timing ambiguity that can result in output tax being declared in the wrong period.

The invoice must show the taxable amount per applicable VAT rate or exemption category — broken out separately where different rates apply to different components of the supply. The unit price exclusive of VAT must be stated. Any discounts or rebates must be shown, unless they are already reflected in the unit price.

A mixed supply involving both standard-rated and zero-rated elements must show each element separately, with its own taxable amount and applicable rate. A single aggregate figure is insufficient.

The applicable VAT rate expressed as a percentage — 15% for standard-rated supplies, 0% for zero-rated supplies. Where an exemption applies, the invoice should reflect that status. Where different rates apply to different line items, each rate must be stated against the relevant line.

The VAT amount expressed in Saudi Riyals — not in the transaction currency, not in a foreign currency, and not as a percentage only. Where the invoice is denominated in a foreign currency, the SAR equivalent of the VAT must still appear, calculated using the Saudi Central Bank official rate on the tax due date.

This is one of the most commonly missed fields on invoices from foreign suppliers operating in Saudi Arabia and from multinational companies using global invoice templates.

Where VAT is not charged at the standard 15% rate, the invoice must include a narration explaining the applicable treatment. This applies to zero-rated supplies (with the applicable zero-rating basis), exempt supplies, and reverse charge supplies (with the RCM statement). A bare “0%” without explanation of why is non-compliant.

Example narrations: “Zero-rated export supply — Article 32 VAT Implementing Regulations” or “Exempt supply — residential real estate lease” or “Reverse charge applies — customer to account for VAT.”

Where a taxable person has received ZATCA approval to account for VAT on eligible used goods using the profit margin method under Article 48, the invoice must include a reference to the fact that VAT is being charged on the profit margin rather than the full sale price. This alerts the customer that input VAT recovery is not available in the normal way on that supply.