​​​​​​What is E-Invoicing (FATOORAH)?

Electronic invoicing is a procedure that aims to convert the issuing of paper invoices and notes into an electronic process that allows the exchange and processing of invoices, credit notes & debit notes in a structured electronic format between buyer and seller through an integrated electronic solution.

 

What is an electronic invoice?

A tax invoice is generated in a structured electronic format through electronic means. A paper invoice converted into an electronic format through copying, scanning, or any other method is not considered an electronic invoice.

 

Tax Invoice

An invoice that is usually issued by a Business to another Business (B2B), contains all tax invoice elements.​

 

Simplified Tax Invoice

An invoice that is usually issued by a Business to consumer (B2C) contains all simplified tax invoice elements.​

 

How does E-Invoicing (FATOORAH) work?

E-Invoicing has been rolled out in two phases in KSA, the first phase, enforceable as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to today, with invoices issued through a compliant electronic solution and including additional fields depending on the type of the transaction: