E-invoicing compliance and regulatory updates - Saudi Arabia

Electronic Invoicing in Saudi Arabia

Is e-invoicing mandatory in Saudi Arabia ?

Yes, e-invoicing is mandatory for all VAT-registered entities in Saudi Arabia.

Who is affected?

All VAT-registered businesses operating in Saudi Arabia are required to comply with the e-invoicing regulations. This includes:

• Resident Businesses: Entities established within Saudi Arabia and registered for VAT.
• Foreign Businesses: Non-resident entities that are VAT-registered in Saudi Arabia due to their taxable activities within the Kingdom. This encompasses multinational corporations, international branches, and joint ventures under Saudi licenses.

Compliance requirements

E-invoices must include all fields according to the ZATCA requirements and be digitally signed. Invoices must be created in a structured format and approved by ZATCA before being sent to the buyer.

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Key Deadlines 

• No upcoming deadlines

Standards & Platforms  

Platform

The national clearance platform is Fatoora.

What formats are required in Saudi Arabia?

Invoices must be created in XML format, including all required ZATCA-defined fields.

Archiving in Saudi Arabia

What are the archiving requirements in Saudi Arabia?

Invoices must be stored in Saudi Arabia, either in paper form or digitally. Digital invoices must be archived on servers located within the country. The minimum retention period is six years, and for certain invoices, 11 years.

Legal invoice:

• For suppliers: A legal invoice is an invoice that is created in a structured format, includes all ZATCA-required fields, and has been approved through the Fatoora platform.
• For buyers: A legal invoice is one received after it has been cleared and approved by ZATCA.

Want to know more about Basware’s archiving services?

Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.

Key Actions

• Ensure compliance: Connect to the ZATCA platform and issue and receive e-invoices in a structured format with all required fields.
• Archive properly: Store invoices in Saudi Arabia for at least six years (or 11 years for certain services).

Saudi Arabian e-invoicing and archiving requirements at a glance:

Supplier requirement: Saudi suppliers must issue structured e-invoices, obtain approval from ZATCA, and send invoices to buyers only after clearance.

Buyer requirement: Saudi buyers must receive invoices only after they have been validated and approved by ZATCA.

Archiving requirement: Invoices must be stored locally in Saudi Arabia for at least six years, or 11 years depending on the type of service.