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E-Invoicing in Saudi Arabia

Enable QR code

Zakat, Tax and Customs Authority (ZATCA) in the Kingdom of Saudi Arabia, has made it mandatory for taxpayers, subject to VAT, to implement E-Invoicing (Fatoorah). Phase 1 of the implementation requirements will be effective from 4th December 2021.

Apart from the standard VAT receipt, the invoice will also bear a QR code. The QR code can be scanned to show e-invoice related information mandated by the ZATCA guidelines.

To enable QR code for E-Invoices

  1. At the center level, click the Configurations icon.

  2. Search for and select Printer Formats from the POS section.

  3. Select VAT receipt - GCC.

    This setting is only visible for tax-exclusive businesses. If your business includes tax in the receipts, then this setting is not visible.

  4. EnableVAT receipt - Middle East.

    This setting is only valid for businesses operating in the Kingdom of Saudi Arabia.

  5. EnableAdd QR code on invoices.

  6. Click Save.

Add QR code on receipts

Zakat, Tax and Customs Authority (ZATCA) in the Kingdom of Saudi Arabia, has made it mandatory for taxpayers, subject to VAT, to implement E-Invoicing (Fatoorah). Phase 1 of the implementation requirements will be effective from 4th December 2021.

Apart from the standard VAT receipt, the invoice will also bear a QR code. There is no prescribed format for placement of QR code on the receipt as a part of Phase 1 of the E-invoicing guidelines.

As per ZATCA’s guidelines, scanning of the QR code display's these details:

  • Seller’s name

  • Seller’s VAT registration number

  • Invoice total amount with VAT

  • VAT total amount

  • Invoice date and time

To configure QR code on the receipt header

  1. At the organization level, click the Configurations icon.

  2. Search for and select the Templates for email and text setting from the Notifications section.

  3. Locate the Configuration section.

  4. To add a Customer Email Receipt Header, click Edit.

  5. Select [InvoiceQRCode] from the available macros.

  6. Click Save.

To configure QR macro email footer for receipt

  1. At the organization level, click the Configurations icon.

  2. Search for and select the Templates for email and text setting from the Notifications section.

  3. Locate the Configuration section.

  4. To add a Customer Email Receipt Footer, click Edit.

  5. Select [InvoiceQRCode] from the available macros.

  6. Click Save.

    This is how the QR code appears on the receipt:

    QR_code_receipt.png

Validate QR code

Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia, has made it mandatory for taxpayers, subject to VAT, to implement E-Invoicing (Fatoorah). As per ZATCA's guidelines, the invoice will bear a QR code and scanning it will display details such as seller's name, seller's VAT registration number, the total invoice amount with VAT,VAT total amount, invoice date and time.

In this article, you will learn:

ZATCA's mandatory requirements to validate QR code

  • Generate and print a QR code encoded in Base64format with up to 500 characters.

  • The QR code field should have the Tag-Length-Value (TLV) encoded format.

How to scan QR code

  1. Scan QR code using any QR code scanning app.

    Note

    Zenoti does not support a QR code scanner. There are many free apps available online to scan QR codes. Zenoti recommends using Google Lens for this purpose.

  2. After the QR code gets scanned, it appears as an encoded text in Base64format (see screenshot below) with up to 500 characters.

    GL.png

How to decode QR code

  1. Decode the QR strings using any Base64 decoding app. We recommend using Base64decode.

    Note

    Base64decode is an open-source decoding app not provided by Zenoti.

  2. Copy-paste the QR text into the decode field.

    DecodeQR1.png
  3. Click or tap Decode.

  4. After you decode the QR code, it will show the following five fields as per the guidelines provided by ZATCA.

    DecodeQR2.png

    Congratulations! You've successfully scanned and decoded a QR code.

FAQ

Zakat, Tax and Customs Authority (ZATCA) has made it mandatory for taxpayers subject to VAT in the Kingdom of Saudi Arabia, to implement E-Invoicing (Fatoorah). Phase 1 of the implementation requirements will be effective from 4th December 2021.

  1. What will change from 4th December 2021?

    • To be compliant with government rules, ONLY electronic invoices will be allowed. No paper-based invoices will be supported.

    • A mandatory QR Code will be generated on invoices according to ZATCA’s specifications.

    • No tampering or deletion of invoices will be allowed for closed invoices.

  2. Is there a specific format for invoices that must be followed to be compliant?

    For Phase 1, no specific format has been prescribed by the authorities. The invoice needs to be compliant with the VAT receipt formats and must contain a QR code.

  3. Will QR codes be generated on invoice prints or emails when the invoice is still open?

    No, QR codes will ONLY be generated for closed invoices as invoice edits and tampering have been prohibited. This is to ensure only final invoices will contain a QR code.

  4. What details will the QR code display upon scan?

    As per ZATCA’s guidelines, scanning of the QR code should display these details:

    • Seller’s name

    • Seller’s VAT registration number

    • Invoice total amount with VAT

    • VAT total amount

    • Invoice date and time

  5. What is the deadline for Phase 2?

    As per the government, Phase 2 deadline is on 1st January 2023. We'll keep you updated on the developments for Phase 2.

  6. What are things you cannot do on 4th December 2021?

    • Generate manual/handwritten invoices.

    • Generating invoices that do not fulfill authority's requirements.

    • Usage of a system that does not comply with the E-Invoicing requirements as published by the authority.

    • Deleting E-Invoicing after issuing them.