This article explains the difference between a Tax Invoice and a Simplified Tax Invoice in Qoyod, in line with ZATCA (Zakat, Tax and Customs Authority) requirements, and when the system issues each one.
Tax Invoice (B2B)
An invoice issued from one organization to another. Qoyod issues it automatically when the customer has a valid Saudi tax number.
- Includes complete seller and buyer information (name, address, tax number).
- Sent to the Fatoora platform for clearance before being delivered to the buyer.
- If ZATCA rejects it, it is not legal and cannot be used.
Simplified Tax Invoice (B2C)
An invoice issued from an organization to an individual (end consumer). Qoyod issues it when the customer has no tax number.
- Includes core elements: products, quantities, prices, total tax, QR code.
- Delivered to the customer immediately.
- Reported to ZATCA later within 24 hours of issuance.
How Qoyod decides the invoice type
Automatic behavior when creating an invoice:
- Customer tax number entered and Saudi: Tax Invoice (B2B).
- Tax number empty: Simplified Tax Invoice (B2C).
- Tax number is non-Saudi: treated automatically as an export invoice.
- Government entity customer: the invoice is classified as B2G and an additional official identifier (tax number, commercial registration, or alternative identifier) is added for the government entity in the XML file.
Impact of invoice type on workflow
- For B2B invoices: verify the customer’s tax number before clearance, since an error leads to rejection by ZATCA.
- For B2C invoices: there is no need to wait for immediate clearance, but the report must reach ZATCA within 24 hours.
