Health and Education Sector Exemption: National ID on the Invoice

This article explains the requirement to enter the national ID number when issuing a VAT-exempt Invoice for the Health (HEA) or Education (EDU) sectors, under e-invoicing requirements.

Context

Per the royal decree exempting Saudi citizens from VAT on private health and education services, exempt invoices issued to entities in the Health (HEA) or Education (EDU) sectors must include the beneficiary’s national ID in the XML file submitted to the Zakat, Tax and Customs Authority (ZATCA), to prove eligibility for the exemption.

When the warning appears

When:

1. A customer of type HEA or EDU is selected.
2. A VAT-exempt invoice is issued for this customer.
3. And no national ID number exists on the Customer record.

The system shows a warning requiring the ID to be entered before approval.

Adding the national ID

1. Open the Customer record from Sales > Customers.
2. Click “Edit”.
3. In the “Additional Identifiers” section, enter the national ID number (10 digits).
4. Save.
5. Return to the Invoice and retry approval.

Notes

• The exemption applies to private health or education services provided to a Saudi citizen. Verify the beneficiary’s eligibility before applying the exemption.
• The number appears in the XML file in the national identifier field to prove the exemption.