Export E-Invoice Template (ZATCA Phase 2, Zero-Rated VAT)

Exporting from Saudi Arabia is no longer limited to large factories or petrochemical companies. Today, a workshop owner in Riyadh sells spare parts to the UAE, a small factory in Jeddah exports canned goods to Kuwait and Bahrain, and an online store in Dammam ships cosmetics to Qatar and Oman. Every one of them needs an export e-invoice that meets the requirements of the Zakat, Tax and Customs Authority (ZATCA), otherwise the shipment is stopped at the Batha crossing, the Jeddah Islamic Port, or King Khalid Airport.

The regular invoice you use inside the Saudi market is not enough for export. There are additional mandatory fields such as the Harmonized System code (HS Code), delivery terms (Incoterms), customs declaration number, and foreign currency, in addition to applying zero-rated VAT instead of 15%. Any mistake in these fields means a delay in customs clearance, rejection by the correspondent bank, or a penalty from ZATCA.

This guide is built for the Saudi exporter who wants to understand the export e-invoice from A to Z: what it is, what sets it apart from a domestic invoice, how to apply the zero rate correctly, what supporting documents are required, and how to connect it to the Fasah platform and the customs platform. We will work through a practical example throughout the guide: a Saudi exporter selling a 250,000 SAR shipment to the UAE and Kuwait on CIF Dubai terms, tracking every step from issuing the invoice to having the tax return accepted.

What an Export E-Invoice Is and How It Differs from a Domestic Invoice

An export e-invoice is a tax and customs document issued by the Saudi exporter when selling a good or service to a buyer based outside the Kingdom. The document carries the same legal weight as a domestic tax invoice, but it is subject to extra requirements imposed by both ZATCA and the Customs Authority at the same time. The invoice here is not just an accounting record, it is a document that travels with the shipment from the factory to the port, from the port to the importing country, and it is what banks rely on to transfer the deal value and release letters of credit.

The core difference between an export invoice and a domestic invoice goes beyond the tax rate. There are substantive differences in fields, currency, supporting documents, and the way they are disclosed inside the monthly or quarterly tax return.

Legal Pillars of an Export Invoice

• Full seller identity: the legal name of the Saudi entity, commercial registration number, 15-digit tax number, and approved national address.
• Foreign buyer identity: legal name, country, the buyer’s tax registration number in their country (if any), and full address in English.
• Goods details: description in Arabic and English, an 8 to 12 digit HS Code, quantity, net and gross weight.
• Value and currency: price in the original deal currency (USD, EUR, AED, etc.), the approved exchange rate, and the equivalent in Saudi Riyals.
• Delivery terms (Incoterms 2020): EXW, FOB, CIF, DAP, or others, with the port or delivery point specified precisely.
• Customs declaration number: added after the declaration is issued through the Fasah platform or the Saudi customs system.

Domestic Invoice vs. Export Invoice

Why Export Invoices Are Treated Differently in the Books

A domestic invoice is posted directly to the domestic sales account and to output VAT. An export invoice, on the other hand, goes into a separate sub-account named “Export Sales” or “Sales outside the Kingdom”, with no offsetting amount in output VAT because the rate is zero. This classification is essential when filling in the tax return, where exports appear in a separate box, and it carries with it the exporter’s right to recover the input VAT paid on raw materials and logistics services.

Zero-Rated VAT on Exports: ZATCA Conditions and Justifications

Applying the zero rate to export invoices is not an open option for anyone who claims to be exporting. ZATCA has set strict conditions that must all be met before a supply is considered eligible for the zero rate, and any breach of one of these conditions automatically converts the supply into a domestic supply subject to 15%.

Core Conditions for Applying the Zero Rate

• Actual exit of goods from the Kingdom: issuing an invoice with a foreign address is not enough. The goods must physically leave through one of the Saudi customs ports within 90 days of the supply date.
• Proof of exit through approved documents: the export customs declaration, the bill of lading for sea freight, an Airway Bill for air freight, or a CMR for road freight.
• Buyer based outside the Kingdom: exporting to a Saudi company is not allowed, even if it asks for the goods to be shipped to its branch abroad through a domestic invoice and then re-exported.
• Goods not consumed inside the Kingdom: if the goods are opened or used inside Saudi Arabia before shipping, the zero-rate conditions fall away.
• Exporter’s commercial registration allows the activity: the entity’s commercial registration must include export or general trade activity.

Cases Where the Zero Rate Falls Away

There are common situations where Saudi exporters lose their right to the zero rate and the entire supply turns into 15% retroactively, with a late-payment penalty. These include shipping the goods more than 90 days after the invoice date without prior approval for an extension, the foreign buyer actually being a Saudi resident with a valid iqama and an operating business, or using the goods at an exhibition inside the Kingdom before they are shipped.

Justifications ZATCA Asks for at Audit

When export invoices are reviewed during field audits, ZATCA asks for the following package of documents at a minimum for each invoice: a copy of the e-invoice in XML format, a copy of the export customs declaration stamped by Customs, a copy of the bill of lading, a copy of the bank payment notice (Swift) proving that the deal value was transferred from outside the Kingdom, and a copy of the sales contract or Purchase Order from the foreign buyer.

Mandatory Fields on an Export Invoice

An export e-invoice contains fixed fields, none of which can be skipped. Omitting or making a mistake in any field makes the invoice rejected at customs clearance or during a tax audit. The following table sets out every mandatory field with its description and data source.

The HS Code Field: Why It Is the Most Dangerous

The Harmonized System code (HS Code) is the field where Saudi exporters most often go wrong. The code defines the customs classification of the good, which determines the customs duties in the importing country, the preferential rules of origin, and any technical restrictions that may apply. A single-digit mistake can move the good from a 0% duty heading to a 25% heading, or place it under import restrictions that block clearance. The fix: use the official search tool on the Saudi Customs website to get the right code before issuing the invoice, and double-check the code with your customs broker when in doubt.

The Incoterms Field: Why It Changes Everything

Delivery terms set when risk and ownership transfer from seller to buyer, and who pays for shipping, insurance, and duties. Picking the wrong Incoterm means absorbing a cost you did not agree to, or losing your margin. For example, if you sold on CIF Dubai terms at 250,000 SAR including freight and insurance, you cannot then ask the buyer to compensate you for a delayed vessel or for part of the shipment lost before it reached Jebel Ali Port.

E-Invoicing Phase 2 for Exports and XML Requirements

ZATCA rolled out Phase 2 of e-invoicing in waves starting in 2023, and gradually brought in every entity registered for VAT. The export invoice is no exception, it follows the same technical requirements: issue the invoice in an approved XML format, sign it digitally, and send it to the Fatoora platform for validation before delivering it to the customer.

Technical Structure of an Export E-Invoice

• XML in UBL 2.1 standard: a unified coding language used by every GCC country and most countries worldwide for e-invoicing.
• Cryptographic Stamp: a digital seal issued by a certification authority approved by ZATCA.
• Unique UUID: a globally unique identifier for each invoice that never repeats, generated automatically by the invoicing system.
• QR Code: a quick response code containing the invoice’s core data (number, date, value, seller name, tax number).
• Previous Invoice Hash: a hash value that links the invoice to the previous one in the entity’s sequence, preventing tampering or deletion.

Clearance vs. Reporting

Tax invoices between two businesses (B2B) follow the Clearance model, meaning the invoice must be sent to Fatoora and stamped by ZATCA before being delivered to the customer. Export invoices are handled with the same Clearance logic because the exporter treats the foreign buyer as a B2B customer. Every export invoice must go through the Fatoora platform and receive its clearance number before it is printed, attached to the shipment, and sent to the buyer.

How Qoyod Generates the Invoice Automatically

Qoyod is integrated with the Fatoora platform through an approved API. It generates the XML file automatically from the invoice data the user enters, adds the digital signature, sends the invoice to the platform, waits for clearance, then pastes the QR Code and the clearance number onto a PDF copy that can be printed or emailed to the customer. All of this happens in under 3 seconds without any manual intervention.

Linking the Invoice to the Fasah Platform and the Customs Platform

Issuing the e-invoice is the first step. The next step is to link it to two core Saudi platforms for every export and import operation: the Fasah platform (fasah.sa) for managing customs procedures, and the ZATCA portal (zatca.gov.sa) for tax disclosure.

The Fasah Platform: Its Role in the Shipment Journey

The Fasah platform is the official unified gateway for cross-border trade in the Kingdom. Through it, customs declarations are submitted, fees are paid, shipments are linked with shipping companies, and the status of every shipment is tracked from arrival at the port to final clearance. The Saudi exporter has to link their e-invoice to the export declaration filed in Fasah by entering the invoice number in a dedicated field inside the declaration, and uploading a PDF copy of the invoice as an attachment.

Steps to Issue an Export Customs Declaration

• Sign in to the Fasah platform: through the National Single Sign-On with the account of the entity’s owner or an authorized customs broker.
• Create a new export declaration: pick the declaration type (final, temporary, re-export) and fill in the consignor and consignee details.
• Enter shipment items: for each item, the HS Code, quantity, weight, value, and country of origin.
• Attach documents: the invoice, the Packing List, the certificate of origin, and the bill of lading if available.
• Pay the fees: export fees are usually nominal or exempt, but service fees may apply depending on the port.
• Receive the declaration number: issued automatically after approval, then written on the invoice and on the outer packaging of the shipment.

The ZATCA Portal: Tax Disclosure

In the monthly or quarterly tax return, the exporter discloses the value of exports in the designated box (Box 4 in the form). The disclosed value is the export invoice value in Saudi Riyals (after applying the exchange rate on the issue date). The recoverable input VAT is disclosed in Box 7, covering purchases and services related to exports (packaging, inland freight, insurance, commissions, etc.).

Incoterms and Their Accounting Impact

Incoterms are not just a legal detail, they have a direct impact on revenue recognition, the timing of ownership transfer, and the treatment of shipping and insurance costs. Each Incoterm defines the risk transfer point, who pays each cost, and when revenue is recognized on the accrual basis.

EXW (Ex Works): Delivery at the Factory Gate

The exporter places the goods ready in its warehouse. The buyer bears every cost from that point: inland transport, clearance, international shipping, insurance, and clearance in the destination country. The invoice does not include any shipping or insurance cost. Revenue is recognized when the goods are handed over at the warehouse. No need to record shipping costs as an expense for the exporter.

FOB (Free On Board): Delivery Onboard the Vessel

The exporter pays for inland transport, Saudi customs clearance, and loading the goods onto the vessel. Risk transfers to the buyer the moment the goods cross the ship’s rail at the Saudi port. The invoice includes only the value of the goods (and may include small loading fees). Revenue is recognized at loading onto the vessel. Inland transport and clearance costs are booked as selling expenses.

CIF (Cost, Insurance, Freight): Including Insurance and Freight to the Destination Port

The most common term for goods exports to the Gulf countries. The exporter bears the cost of shipping and insurance up to the destination port. The invoice includes: goods value + freight cost (Freight) + insurance (Insurance). For accounting, the three components must be separated on the invoice and in the books to allow real margin analysis. Revenue is recognized at loading onto the vessel (same point as FOB), but shipping and insurance costs are booked as cost of sales rather than selling expenses.

DAP (Delivered At Place): Delivery at the Buyer’s Destination

The exporter bears every cost up to the buyer’s destination, except for customs clearance in the destination country and the customs duties there. Common for road shipments to Gulf countries through the Batha or Salwa crossings. The invoice includes the value of the goods + the full road freight. Road freight cost is booked as cost of sales.

Handling Foreign Currencies and Exchange Differences

Most export invoices are issued in a foreign currency: US Dollars for global markets, UAE Dirhams for the UAE, Kuwaiti Dinars for Kuwait, and Euros for Europe. The Saudi Riyal has been pegged to the US Dollar at a fixed rate of 3.75 for decades, but other currencies fluctuate daily, and this creates exchange differences that must be handled correctly for both accounting and tax purposes.

The Exchange Rate Recognition Rule

ZATCA applies the International Financial Reporting Standards (IFRS) when handling foreign currencies. The approved exchange rate for the invoice is the rate prevailing on the invoice issue date, according to the daily bulletin of the Saudi Central Bank (SAMA), or the rate of the commercial bank the entity deals with on a consistent basis. It is not allowed to pick a higher exchange rate to reduce the invoice value in Riyals, or a lower one to inflate it.

Handling Exchange Differences on Collection

There is usually a time gap between issuing the invoice and collecting its value through the bank. During that gap, the exchange rate may shift. The difference between the invoice value in Riyals on the issue date and the actual amount collected in Riyals is booked as “Foreign Exchange Gains/Losses” in the income statement.

Worked Example: a 250,000 SAR Shipment to the UAE and Kuwait

The Saudi exporter issued an invoice for 66,666 US Dollars (equivalent to 250,000 SAR) to a buyer in Dubai on CIF Dubai terms. The invoice was issued on 22 May 2026. The bank collection happened on 15 July 2026 at an exchange rate of 3.7520. The FX gain of 133 SAR is booked in the foreign exchange differences account, and it does not change the value of exports disclosed in the tax return (which stays at 250,000 SAR).

Required Shipping Documents

The export invoice does not travel alone with the shipment. There is a bundle of documents that must accompany the goods from the export port to the import port, and these documents are a condition for customs clearance in the destination country, for releasing letters of credit at banks, and for proving the validity of the supply before ZATCA.

Core Shipping Documents

• Commercial Invoice: the e-invoice approved by ZATCA, with an English copy for foreign customs.
• Packing List: a precise breakdown of every box or carton: contents, weight, dimensions, serial number.
• Bill of Lading: for sea freight, or Airway Bill for air, or CMR for road. It proves the carrier received the goods and committed to deliver them to the consignee.
• Certificate of Origin: proves the goods are of Saudi origin, issued by the Saudi Chamber of Commerce.
• Quality or Conformity Certificate (if required): for some goods such as food, medicines, or building materials, a certificate from SABER or the Saudi Food and Drug Authority is required.
• Insurance Policy: required if the terms are CIF or CIP, covering the goods from the export port to the destination port.
• Export Permit (for restricted goods): some goods such as precious metals or agricultural products require prior permission from the Ministry of Commerce or the competent authority.

Coordinating Documents with the Customs Broker

The Saudi customs broker plays the role of the link between the exporter, the Fasah platform, the shipping company, and the consignee in the destination country. Documents must be handed to the broker at least 24 to 48 hours before the goods arrive at the port, so they can issue the customs declaration and book a clearance window. Any delay means additional storage fees at the port, and may even lead to losing the booking on the vessel.

Certificate of Origin and Customs Conventions

The Certificate of Origin is a document proving that the exported goods are wholly or partially of Saudi origin. Its importance is that it decides whether the goods benefit from customs exemptions under the regional and international trade agreements the Kingdom has signed. Without a valid certificate of origin, the importer pays the full customs duties in their country, and may cancel the order or ask the exporter for a discount to make up the difference.

The GCC Customs Union Agreement

The six Gulf Cooperation Council countries (Saudi Arabia, UAE, Kuwait, Bahrain, Oman, Qatar) form a customs union. Saudi goods enter these countries free of customs duties, provided Saudi origin is proven. The Chamber of Commerce issues a GCC Certificate of Origin for this purpose, and asks for local origin documents such as purchase invoices, the factory lease contract, the commercial registration, and the industrial license.

The Greater Arab Free Trade Agreement (GAFTA)

Brings together 18 Arab countries. Qualifying Saudi goods (those meeting a local value content of at least 40%) enter these countries with full customs exemption. The certificate of origin here is an Arab one in the GAFTA template. Benefiting markets include Jordan, Egypt, Morocco, Tunisia, Lebanon, Iraq, Yemen, Sudan, and Palestine.

The Generalized System of Preferences (GSP)

A program under which goods from developing countries get preferential customs treatment in advanced markets (the European Union, Japan, Canada, Australia, New Zealand). The Kingdom is subject to specific conditions, and certain Saudi goods benefit from this system when exporting to these markets.

Input VAT Deduction for the Exporter

The biggest accounting advantage for a Saudi exporter is the right to fully recover the VAT paid on production inputs and on the logistics services tied to exports. This advantage is what actually makes exporting profitable, even with a zero rate applied on outputs.

Inputs Eligible for Refund

• Raw materials and semi-finished goods: every purchase that went into producing the exported good, even if bought months before the export.
• Logistics services: inland freight to the port, customs broker fees, and packing costs.
• Marine or air insurance: the insurance premium on the shipment, even when terms are CIF.
• Brokerage and intermediary commissions: commissions paid to export intermediaries or export management companies inside the Kingdom.
• Bank fees: commissions for opening letters of credit, and the cost of international bank transfers.
• Rent, utilities, and telecom: a proportional share of these, based on how much of the total activity relates to exports.

The Practical Refund Mechanism

Eligible input VAT is calculated monthly or quarterly and disclosed in the tax return. If input VAT is greater than output VAT (which is the usual situation for an exporter, since outputs are zero-rated), a credit balance appears in favor of the entity. The entity can ask ZATCA to refund it in cash, or carry it forward to the next returns to offset against future output VAT.

Refund Example for a 250,000 SAR Shipment

The exporter sold a 250,000 SAR shipment at zero rate (no output VAT). During the same period, it paid VAT on the following inputs: raw materials 120,000 SAR x 15% = 18,000 SAR, shipping and insurance services 8,000 SAR x 15% = 1,200 SAR, rent and overheads 4,000 SAR x 15% = 600 SAR. Total eligible input VAT is 19,800 SAR, which the exporter is entitled to recover in full from ZATCA after the return is accepted.

The Most Common Mistakes on Export Invoices

Most penalties ZATCA imposes on Saudi exporters come from recurring mistakes on export invoices, all of which can be avoided through a careful review before issuance. These are the most common mistakes in the field:

Mistake 1: Wrong HS Code

Picking a wrong customs code changes the customs classification of the good, so it lands under a higher duty heading in the importing country, or the preferential certificate of origin is rejected. The fix: use the GCC unified customs tariff guide, and double-check the code with a certified customs broker before issuance.

Mistake 2: Applying 15% Instead of Zero

Some accountants, out of caution, apply 15% on the export invoice “to avoid problems”. This turns the supply into a domestic supply retroactively and obliges the entity to actually pay the tax, even when it should have been zero-rated. The fix: stick to the law, apply the zero rate as long as the export conditions are met, and keep every supporting document.

Mistake 3: Failing to Link the Invoice to the Customs Declaration

Issuing the invoice without waiting for the customs declaration number, or issuing the declaration without referencing the invoice number. The result: a mismatch between the tax and customs data, and a field audit opened on the entity. The fix: issue the invoice and the customs declaration in the same session, and write the declaration number on the invoice as an extra field.

Mistake 4: Using an Unapproved Exchange Rate

Pulling an exchange rate from an unofficial site, or using a monthly average instead of the rate on the issue date. The fix: use the day’s rate from the official SAMA bulletin, or the rate of the commercial bank the entity uses consistently and can document.

Mistake 5: Forgetting to Disclose Input VAT

Some exporters issue their invoices at zero rate but never claim input VAT back, losing significant amounts every year. The fix: record every purchase invoice tied to the export activity, and review the return before submission to make sure every eligible input is included.

Mistake 6: Goods Leaving the Kingdom After 90 Days

If the invoice was issued in January and the goods did not physically leave before April, the zero rate falls away, and the supply becomes domestic at 15% with a penalty. The fix: do not issue the invoice until a few days before shipping, or ask ZATCA for an extension before the 90-day window runs out.

How Qoyod Issues ZATCA-Compliant Export E-Invoices

Qoyod is a Saudi accounting system licensed and approved by ZATCA for Phase 2 e-invoicing. It is built to handle every domestic and international invoicing scenario, including export invoices in all their complexity.

Ready-Made Export Invoice Templates

When the entity is set up in Qoyod, an “Export” invoice type can be enabled with every mandatory field on by default: HS Code, Incoterms, country code, currency, and exchange rate. The template is print-ready in Arabic and English together, with the QR Code and the ZATCA clearance number.

Integration with the Fatoora Platform

Qoyod sends every export invoice automatically to the Fatoora platform through an API, gets the clearance number and the QR code, and embeds them in the final PDF. All of this happens in under 3 seconds. The user does not need to understand XML, UBL, or digital signing, the system handles the technical details end to end.

Currency and Exchange Rate Management

Qoyod supports more than 60 currencies, pulls daily exchange rates automatically, and posts accounting entries in both the foreign currency and the Saudi Riyal at the same time. When the invoice is collected, it calculates the exchange differences automatically and books them in the gains and losses account without any manual work.

Tax Return-Ready Reports

Qoyod provides a detailed tax return report that separates domestic sales from exports, calculates the eligible input VAT for refund, and produces a file in the required return format ready to upload to the ZATCA portal. The accountant reviews the numbers and submits the return in minutes instead of hours. See Qoyod’s invoicing features and the pricing plans to pick what fits your export activity.

Specialized Support for Export Invoices

The Qoyod support team is available 24 hours, 7 days a week to answer Saudi exporters’ questions, including how to set up the HS Code, how to handle complex Incoterms, and how to disclose input VAT correctly.

Frequently Asked Questions

Can an export invoice be issued in Saudi Riyals only?

Yes, it can be issued in Saudi Riyals if the exporter and the buyer agree. But most importers prefer their local currency or the US Dollar. In practice, it is better to issue the invoice in the deal’s original currency with the Riyal equivalent added as an extra field, to simplify disclosure in the tax return.

What do I do if the shipment is canceled after the invoice is issued?

An electronic Credit Note linked to the original invoice must be issued to cancel it fully or partially. The Credit Note is issued through the Fatoora platform with the same workflow as the invoice, and it is disclosed in the tax return under the adjustments box. If it is not canceled with a Credit Note, the invoice remains legally in force.

Do I need to register the foreign buyer in the system as a customer before issuing the invoice?

Yes, they must be registered as a customer in the accounting system with full details: legal name, country, their tax registration number in their country (if any), and address. This speeds up issuing future invoices for them and ensures their data is accurate on every invoice. Qoyod stores the customer profile and uses it automatically on later invoices.

What is the difference between an export invoice and a temporary export invoice?

Final export means the goods leave the Kingdom permanently, with the goal of selling them to the foreign buyer. Temporary export means the goods leave for a limited period (for exhibitions, repairs, or trials), and they are expected to come back to the Kingdom. The zero rate is not applied in full to temporary exports, they are subject to a special treatment that varies with the nature of the temporary exit.

Do I need to issue a certificate of origin for every export shipment?

The certificate of origin is not mandatory in itself, but it is required in markets that grant your goods preferential customs treatment. For exports to GCC countries (UAE, Kuwait, etc.) you need a GCC Certificate of Origin. For exports to countries with no agreement with Saudi Arabia, a General Certificate of Origin can be issued just to ease clearance.

When does an export invoice lose the zero rate and revert to 15%?

In four main cases: the goods not leaving the Kingdom within 90 days of the invoice date, no approved proof of exit (customs declaration + bill of lading), discovering that the buyer is actually resident in the Kingdom rather than abroad, or the goods being used inside the Kingdom before they are shipped.

Is input VAT on international shipping refundable?

If the shipping company is Saudi and issued an invoice with 15% VAT to the exporter, then yes, the tax is refundable as part of the input VAT on exports. If the shipping company is foreign and issued an invoice without Saudi VAT, then there is no input VAT in the first place.

How long does it take to process an input VAT refund with ZATCA?

ZATCA usually takes 30 to 60 days to process a refund request after the return is filed, provided the documents are complete and no queries arise. If there is an audit or a request for clarifications, the timeline can stretch to 90 to 120 days. Keeping every supporting document (invoices, customs declarations, bank transfer notices) speeds up processing noticeably.