Classifying an export invoice incorrectly means it gets rejected by the ZATCA system. We updated the classification logic to rely on one clear criterion, and added an alert that catches conflicts before submission.
Automatic classification based on the customer’s country
The system now determines the export option on an invoice based on the country in the customer’s billing address as the single primary criterion. If the customer’s country is outside Saudi Arabia, the export option is enabled automatically and locked permanently with no manual override. The reverse applies when the country is inside the Kingdom.
The system also determines the export invoice type automatically:
- The customer is a taxable organization, so an export tax invoice is issued.
- The customer is not taxable, so a simplified export tax invoice is issued.
We also added a tooltip on the export field explaining why the option was enabled or disabled automatically, shown at every invoice stage. If the customer’s address data is incomplete on an export tax invoice, the system shows a non-blocking advisory alert to complete it, without stopping approval.
These improvements also apply to credit notes linked to export invoices, since a credit note inherits the original invoice type automatically.
An alert when the tax exemption reason conflicts with the export setting
We added a non-blocking advisory alert that appears when the system detects a conflict between the zero-rate tax reason set at product line level and the export option set at document level.
If the exemption reason on one of the invoice’s products points to export of goods or export of services, while the export option at invoice level is not enabled because the customer is inside the Kingdom or has no address yet, the system shows a window explaining the conflict and letting the user act on it without blocking the save.
The alert applies to invoices, credit notes, and sales debit notes, in organizations with e-invoicing enabled.
The benefit
Catching classification mismatches on export documents before they reach the ZATCA system. That reduces the likelihood of rejected invoices and improves the accuracy of tax classification for customers outside the Kingdom.
The updates are available now. Visit the e-invoicing hub for Saudi businesses.