E-invoicing for restaurants and shops in Saudi Arabia: a simple guide

Phase 1: the generation phase

Started in December 2021. VAT-registered businesses must issue structured electronic invoices (no handwriting) and store them. For sales to individuals you issue a simplified tax invoice carrying a QR code.

• Seller name and VAT number.
• Invoice date and time.
• Invoice total and the VAT amount (15%).
• A specification-compliant QR code.

Phase 2: the integration phase

Started in January 2023 and rolls out in waves by revenue, with each business notified in advance by the authority. It requires your invoicing system to connect to the Fatoora platform: a simplified invoice (to individuals) is reported to the authority within 24 hours, while a standard invoice (business to business) is cleared before it is handed to the buyer. Invoices must be digitally signed.

What this means for a POS

• The POS is where the invoice is created, so it must support the requirements or connect to an approved solution.
• An invoice must not be edited after issuing; it is cancelled with a credit note, not deleted.
• A business needs accurate data: VAT number, commercial registration, national address.

How to prepare

1. Check your wave date on the authority's website or notifications.
2. Prepare your tax details and national address.
3. Ask your POS provider how well it supports both phases and about your business's readiness specifically.
4. Test issuing in a sandbox before relying on real invoices.

This guide is a general introduction, not legal or tax advice. Current requirements and deadlines are on the ZATCA website (zatca.gov.sa).

Invoicing in KLKBAT

KLKBAT issues simplified invoices with a QR code and provides an e-invoicing app enabled per business after setup and testing. Current details on the e-invoicing page.

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