Standard tax invoice (B2B clearance): when you need it

The standard tax invoice: when it applies

A standard tax invoice is issued by one business to another (B2B) and carries all the elements a tax invoice requires. It is different from the simplified invoice issued to individuals (B2C).

It doesn't come up daily in a restaurant or shop, but it shows up with certain orders: lunch boxes for a company meeting, catering for an event, wholesale buying by another shop, or a customer saying "put it under the company name". Hand over a simplified invoice instead, and their accountant can't use it.

Why issuing it works differently

The key difference is the order of steps. In Phase 2, a standard invoice goes to ZATCA and waits for clearance before it is shared with the buyer, while a simplified invoice goes to the customer straight away and is reported within 24 hours. So a standard invoice depends on an answer from ZATCA before delivery, which means it needs a connection at the time of issue.

• Standard: issue, send to ZATCA, receive clearance, then deliver to the buyer.
• Simplified: issue and deliver, then report within 24 hours.

What to collect from the customer

Behind a standard invoice is buyer data you collect before issuing. In CashHub the invoice carries the buyer's VAT number, name and address. Have these ready:

• The buying business's name as registered.
• Its VAT registration number.
• Its address.
• Exactly what goes on the invoice, items and quantities, because a correction after issue is made with a credit note, not an edit.

The buyer's VAT number: the detail that costs

One of the violations ZATCA announced is not writing the VAT registration number of the buying business on tax invoices, and it starts with a warning. The common slip is staff typing the company name from what the customer said and carrying on without the number. Make the number a required field before issuing, and don't rely on memory.

E-invoicing fines

A case from the working week

On a Tuesday, an event coordinator at a company orders lunch boxes for the next morning's meeting and wants an invoice in the company's name. The cashier takes the name, VAT number and address from the company card and issues the standard invoice, and the accountant receives it after clearance. If the data turns out wrong, the fix is a credit note and a new invoice, not deleting the first one.

Cancelling and correcting

The same rule as every invoice: never deleted or edited after issue, and deleting or amending one is a violation: a warning the first time, then SAR 5,000 the second time, then 10,000, 15,000, 20,000 and 30,000, and SAR 40,000 after the sixth, under ZATCA's violations classification guide (2nd edition, May 2024, pages 6 to 13, in Arabic). The older SAR 10,000 figure came from the November 2021 announcement. A return or correction on a standard invoice is made with a standard credit note.

ZATCA credit note

A line for the cashier

Train the team to ask one question before payment: "Is this invoice for an individual or in a business's name?" If it's a business, the cashier stops and asks for the name, VAT number and address before ringing it up. That one question saves you a credit note and a second invoice later, and spares you the customer asking after payment to change the invoice.

How CashHub handles standard invoices

CashHub is built on the Phase 2 requirements. Connecting to the Fatoora platform is done with you during setup, with no technical configuration on your side. It issues the standard tax invoice with the buyer's VAT number, name and address, and invoices are chained and can't be deleted. A standard invoice is sent to ZATCA for clearance before it prints for the buyer, with returns by standard credit note.

E-invoicing guide

Sources: What is e-invoicing (ZATCA) · ZATCA violations classification guide, May 2024 (Arabic) · ZATCA announcement on e-invoicing fines, November 2021 · ZATCA simplified invoice guide: reporting within 24 hours

Frequently asked questions

Can I give the customer a simplified invoice instead?

If they ask as a business, with an invoice in their name and VAT number, the standard invoice is the right one. Simplified is for individuals, and a company accountant can't build on it.

Does a standard invoice need internet?

It waits for ZATCA's answer before delivery to the buyer, so once the connection is live it needs a connection at issue time. Plan a fallback for weak signal.

What buyer data is required?

In CashHub: the buyer's VAT number, name and address.

What if I typed the company name wrong?

Don't edit the invoice. Issue a credit note, then a new invoice with the right details.

Does CashHub issue and send standard invoices to ZATCA?

It issues them in the e-invoice format with the buyer's details. Connecting to the Fatoora platform is done with you during setup, with no technical configuration on your side.

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