What is Simplified Tax Invoice?
A simplified tax invoice is a shorter form of VAT invoice used in Saudi Arabia for retail or B2C transactions where the buyer is not a VAT-registered business. It carries less detail than a standard tax invoice but still meets ZATCA e-invoicing requirements.
How It Works
- Issued at the point of sale to end consumers, typically for transactions below the threshold set by ZATCA
- Must show the seller name, VAT registration number, date, item description, total amount, and VAT amount
- Does not require the buyer’s VAT number or full billing details
- Under ZATCA Phase 2 (Integration), the invoice must carry a QR code and be transmitted to ZATCA in real time
- Buyers cannot use simplified invoices to claim input VAT — they need a standard tax invoice for that
Saudi Context
Simplified tax invoices are the default format for restaurants, retail stores, and pharmacies across Saudi Arabia. ZATCA Fatoora regulations require every taxpayer to issue them electronically through a compliant solution, with a QR code printed on the receipt.
Example
A bakery in Riyadh sells SAR 50 worth of bread to a walk-in customer. The POS prints a simplified tax invoice showing the bakery name, VAT number, item total (SAR 43.48), VAT 15% (SAR 6.52), grand total (SAR 50), and a QR code linked to the ZATCA submission.