Main terms

Electronic Invoicing

It is a mechanism that aims to transform the process of issuing paper invoices and notes into an electronic process that allows the exchange of invoices and debit and credit notes and their processing in a structured electronic format organized between the seller and the buyer. * Tax Invoice

A Tax Invoice as per Article 53(1) of VAT Implementing Regulations that is generated

and stored in a structured electronic format through electronic means. Standard Tax

Invoices are issued in Business to Business (B2B) transactions. A paper invoice

converted into an electronic format through copying, scanning, or any other method is not considered an electronic invoice.

Simplified Tax Invoice

A Simplified Tax Invoice as per Article 53(7) of VAT Implementing Regulations that is generated and stored in a structured electronic format issued for a B2C (business to consumer) transaction and does not include the buyer’s details1. Optionally, Simplified Tax Invoices may also be issued for business-to-business transactions in case the value of supply is below SAR 1,000

Debit Note

Debit notes are issued by sellers to issue a correction in value to buyers. Debit notes are used for increasing the value of the original invoice or the VAT amount. Debit notes follow the same format as the invoice for which they have been issued

Credit Note

Credit notes are issued by the sellers to refund buyers and are used to correct invoice information if generated with an error. Credit notes follow the same format as the invoice they have been issued upon.

FATOORA Portal

ZATCA’s portal through which Tax Invoice, Simplified Tax Invoice, and electronic credit/ debit note data is received, which are generated by the E-Invoice Solutions used by Persons subject to the E-Invoicing Regulations. This portal aims to onboard the user’s EGS Unit through generating cryptographic stamp identifier or renewing the existing one or revoking it. In addition, the user can view the list of onboarded solutions and devices.

Cryptographic Stamp:

An electronic stamp which is created via cryptographic algorithms to ensure authenticity of origin and integrity of content of the data for the Electronic Invoices and its associated Electronic Notes, and to ensure the identity verification of the issuer for the Invoices and Notes for the purpose of ensuring compliance with the provisions and controls of the VAT Law and its Implementing Regulation regarding the generation of Electronic Invoices and Notes. For technical details, please refer to the Security Features Implementation Standard.

Cryptographic Stamp Identifier (CSID):

A Cryptographic Stamp Identifier (CSID) is a unique identifier that links the E-Invoice Solution Unit and a trusted third party able to confirm the identity of the Person subject to the E-Invoicing Regulation and uniquely identify their unit. For technical details, please refer to the Security Features Implementation Standard.

UUID:

A 128-bit number, generated by an algorithm chosen to make it unlikely that the same identifier will be generated by anyone else in the known universe using the same algorithm. The UUID is generated by a compliant E-Invoice Solution and stored inside the XML invoice. Note: In Windows OS UUIDs are referred to by the term GUID.

Hash:

A hash function is any function that can be used to map data of arbitrary size to fixed-size values called hashes that takes up minimal space. A hash procedure is deterministic - meaning that for a given input value it must always generate the same hash value. It is not possible to derive the original data from a hash; hence, hashing is meant to verify that a file or piece of data has not been altered. For technical details, please refer to the Security Features Implementation Standard.

Invoice Reference Number:

A unique and sequential number that identifies the issued invoice by the E-Invoice Solution, according to article 53 of the VAT Implementing Regulations. The VAT Implementing Regulations did not specify a specific format for the Invoice Reference Number, and the reference numbers may be different, for example, a different sequential reference number for each branch, provided that the Tax Invoice is clearly and distinctly defined and follows a sequence.

Clearance:

Clearance is the process where the Authority shall verify that the Electronic Tax Invoices and their associated Electronic Notes transmitted to it (through integration) by the persons subject to E-Invoicing Regulation, fulfil the controls and details specified in the E-Invoicing Resolution, Annexes (1) and (2) of the Resolution, and the relevant technical documentation. The Authority shall insert the Cryptographic Stamp only on the Invoices and Notes which fulfil the controls and details. Please note that the process of Clearance is not applicable to Simplified Tax Invoices.

Reporting of Simplified Tax Invoices and their associated notes:

Reporting is the process of sharing of the Simplified Tax Invoices and their associated Notes which are generated electronically - which include the Cryptographic Stamp as specified in Clause (Fourth) of the E-Invoicing Resolution- with the Authority by the persons subject to E-Invoicing Regulation. Persons subject to the E-Invoicing Regulation will be required to transmit all Simplified Tax Invoices to the FATOORA Portal within (24) hours from its issuance.

Human Readable Format: The human readable format of the invoice is a recognizable invoice that can be read and understood by a human reader (including buyers and the Authority).