How to invoice in Saudi Arabia
Saudi invoices must be issued in Arabic, though a bilingual Arabic/English layout is accepted. They show the seller's name, address and 15-digit VAT registration number, the buyer's details and VAT number for B2B, a sequential invoice number, the supply and issue dates, and a line-item breakdown with 15% VAT shown separately and totals in SAR. Invoices must be issued in Arabic (a bilingual Arabic/English layout is permitted), and e-invoices carry a QR code. Businesses within scope of ZATCA's Phase 2 must issue cleared XML e-invoices through the Fatoora platform rather than plain PDFs.
| Saudi Arabia at a glance | Detail |
|---|---|
| Currency | SAR (SAR) |
| Standard VAT | 15% |
| Tax ID | VAT Registration Number |
| Paper size | A4 |
| Typical terms | Net 30 |
| E-invoicing | Phasing in |
Tax ID format: A 15-digit number that starts and ends with the digit 3, e.g. 300000000000003.
What Saudi invoices must include
- The word “Invoice” and a unique, sequential invoice number
- The issue date (and the supply date if it differs)
- Your business name, address and VAT Registration Number
- The client's name and address (and their VAT Registration Number for reverse-charge or intra-EU supplies)
- A clear description and quantity for each line
- The net amount per VAT rate, the rate(s) applied and the VAT amount
- The total payable, in SAR
- Payment terms, the due date and how to pay (bank name, IBAN/account)
- Arabic-language invoice text (legally required; bilingual Arabic/English is allowed)
- QR code (mandatory on e-invoices)
- Buyer's VAT registration number for B2B supplies
- Supply/delivery date where different from the invoice date
- VAT shown separately per line and as a total
VAT & reverse charge
For cross-border work, the right wording matters. Invoice Forever offers ready-made Saudi VAT notes such as:
- Taxable supply - VAT charged at the standard rate of 15%.
- Zero-rated export of goods or services outside the GCC - 0% VAT under the KSA VAT Implementing Regulations.
- Reverse charge - VAT to be accounted for by the recipient under the reverse-charge mechanism.
E-invoicing in Saudi Arabia
ZATCA's Fatoora e-invoicing runs in two phases. Phase 1 (electronic generation of invoices with a QR code) has been mandatory for all VAT-registered businesses since 4 December 2021. Phase 2 (integration and real-time clearance of invoices through the Fatoora platform) has been rolling out since 1 January 2023 in turnover-based waves, starting with the largest taxpayers (over SAR 3 billion) and progressively lowering the threshold — waves through 2025 brought businesses with taxable turnover down to roughly SAR 2 million into scope, and further waves are being announced through 2026 that continue to lower the threshold toward the full VAT-registered population. ZATCA notifies each wave's taxpayers at least six months before their integration deadline.
Invoice Forever can export a structured EN 16931 / Peppol BIS (UBL) e-invoice alongside the PDF (beta) — the format most of these mandates are built on. You still send it via your own access point, and some countries require their own national format.
Verified 23 July 2026 against the source. E-invoicing rules are changing quickly, so always confirm the current position with the Zakat, Tax and Customs Authority (ZATCA) before you rely on it. This page is general guidance, not tax advice.
Payment terms in Saudi Arabia
Net 30 is the common B2B norm, with 30-60 day terms typical on larger corporate and government contracts; smaller invoices are often due on receipt.
Questions about invoicing in Saudi Arabia
The standard VAT rate is 15%, in force since 1 July 2020 (raised from the original 5%) and administered by ZATCA. Some supplies, such as exports outside the GCC and certain international services, are zero-rated, while others are exempt.
Yes, if you are VAT-registered — registration is mandatory once taxable turnover exceeds SAR 375,000. A valid tax invoice must show your 15-digit VAT registration number, and for B2B supplies it must also show the buyer's VAT number.
Yes. Under ZATCA's Fatoora system, Phase 1 electronic generation with a QR code has been mandatory for all VAT-registered businesses since December 2021. Phase 2 real-time clearance through the Fatoora platform is being phased in by turnover, starting with the largest taxpayers and moving down to smaller businesses through successive waves in 2025 and 2026; ZATCA notifies each wave at least six months before its integration deadline.
Make an invoice for Saudi Arabia, free.
SAR and 15% VAT already set, on A4 paper. No signup, no watermark.
Make an invoice for Saudi Arabia