Chapter 9 - Calculation of Tax Payable
Article 53 - Tax Invoices
Each Taxable Person must issue or arrange for the issuance of a Tax Invoice containing โ at a minimum - the information provided in Paragraph 5 of this Article in the following cases:
Where the Taxable Person makes a Taxable Supply of Goods or Services which he to another Taxable Person or to a non-taxable legal Person or to an establishment (sole proprietorship) or to any other entity established in accordance with the laws of the Kingdom;
Where the Taxable Person receives Consideration in respect of and prior to making a Taxable Supply of Goods or Services to an another Taxable Person, to a Nonresident Legal Person, to an establishment (sole proprietorship) or to any other entity established in accordance with the laws of the Kingdom;
Intra-GCC Supplies and Exports; and
The Supply of zero-rated Service to a customer not residing in GCC Member State.
In all cases set forth under Subparagraph (a) hereof, the Tax Invoice must be issued no later than the fifteenth day of the month following the month in which the Supply took place.
Notwithstanding the provisions of this Paragraph 1, a Taxable Person may issue a summary Tax Invoice -in accordance with Paragraph 7 of this Article- in respect of the Supplies set forth in Subparagraph (a) of this Article the value of which is less than SAR 1,000.
Subject to the Authority's approval, a Taxable Customer may issue Tax Invoices on behalf of a Supply made by a Taxable Supplier provided that a prior agreement between such Supplier and Customer has been made to this effect; that the Tax Invoice state that it was issued by the Customer on behalf of the Supplier; and that the Supplier and Customer are registered with the Authority for VAT purposes. A Tax Invoice issued as per this Paragraph will be deemed to be issued by the Supplier. The agreement referred to in this Paragraph must include a recitation of the procedures required for the Tax Invoices to be approved by the Supplier on whose behalf they are issued and a certification by the Supplier that they will not issue invoices in respect of the Supplies for those Tax Invoices were issued. [79]
Subject to the Authority's approval, a Taxable Person may issue Tax Invoices through a third-party provided that all obligations [legal requirements] set forth in the Law and these Regulations are satisfied. The Supplier shall be responsible for the accuracy of the information shown on the Tax Invoice and for reporting Output Tax on the supply. [80]
In the events set forth in Paragraph 1 of this Article, a Taxable Person may issue a summary Tax Invoice that includes more than one separate supply of Goods or Services to the same Customer in a period not exceeding one calendar month; the summary Tax Invoice must contain โ at a minimum - the information set forth in Paragraph 5 of this Article and must be issued no later than the fifteenth day of the month following the month for which the Tax Invoice pertains. [81]
A Tax Invoice must include the following details in Arabic, in addition to any other language also shown on the Tax Invoice as a translation:
the date of issue,
a sequential number which uniquely identifies the Tax Invoice,
the Tax Identification Number of the Supplier,
in cases where the Customer is required to self-account for Tax on the Supply, the Customer's Tax Identification Number and a statement that the Customer must account for the Tax,
the name and the address of the Supplier and of the Customer,
the quantity and nature of the Goods supplied, or the scope and nature of the services rendered,
the date on which the Supply took place, where this differs from the date of issue of the Tax Invoice,
the taxable amount per rate or exemption, the unit price exclusive of VAT and any discounts or rebates if they are not included in the unit prices,
the rate of Tax applied,
the amount of Tax payable, shown in SAR,
in the case where Tax is not charged at the basic rate, a narration explaining the Tax treatment applied to the supply, and
in cases where the profit margin method for Eligible Used Goods is applied, reference to the fact that VAT is charged on the profit on those Eligible Used Goods.
Tax Invoices shall be issued in an electronic format in cases where this is prescribed in any regulations issued by the Minister of Finance or the Board of Directors surrounding the requirements and conditions for issue of electronic Invoices, provided these Regulations are in force as at the date of the Supply.
Every Taxable Person must issue a Simplified Tax Invoice containing โ at a minimum - the information set forth in Paragraph 8 of this Article in any of the following cases:
the supply of Taxable Goods or Services made to a Person other than a Person referred to in Paragraph 1(a) of this Article; and
the receipt of Consideration in respect and prior to the occurrence of a Taxable Supply of Goods or Services to a Person other than a Person referred to in Paragraph 1(b) of this Article.
In all cases referred to in Subparagraph (a) of this Paragraph, a Simplified Tax Invoice must be issued on the earliest of the date of the supply and the date of receipt of Consideration โin whole or in part-.
Notwithstanding the provision of Subparagraph (b) of this Article, a Taxable Person may issue Simplified Tax Invoices in respect of the following Supplies no later than the fifteenth day of the month day following the month on which the Supply took place and provided that such Simplified Tax Invoices contain โat a minimum- the Customer's name, Customer's address, and the date the Supply took place in addition to the information set forth in Paragraph 8 of this Article:
The Supply of Financial Services made by banks, financial institutions, or insurance companies licensed by the competent authorities in the Kingdom;
Any other Supplies as approved by a decision of the Governor.
A Taxable Person eligible for the exemptions related to the Supplies set forth in Subparagraph (c) hereof may issue a summary Simplified Tax Invoice containing separate Supplies of Goods or Services made by such Person to the same Customer within the same calendar month, provided that such summary Simplified Tax Invoice contain โ at a minimum - the Customer's name, Customer's address, and the period to which the Supplies pertain, in addition to the information set forth in Paragraph 8 of this Article; such summary Simplified Tax Invoice must be issued no later than the fifteenth day of the month following the calendar month to which the Supplies pertain.
A Simplified Tax Invoice must include the following details:
the date of issue,
the name, address and Tax Identification Number of the Supplier,
a description of the Goods or services supplied,
the Consideration payable for the Goods or services,
the Tax payable or a statement that the Consideration is inclusive of Tax in respect of the Supply of the Goods or services.
The Authority's governor has the right to amend the details that must be provided in the invoices according to this Article, and he has the right to specify any additional details that must be available in the invoices For the purposes of applying the provisions of the electronic billing regulation. [83]
The Authority may, with proper justification and upon conducting the necessary analysis, suspend or revoke โ in full or in part - electronic invoicing obligations on a certain group of Taxable Person or specific Taxable Person upon, and may accordingly issue decision to that effect at its discretion. [84]
The term 'Tax Invoice' shall mean - wherever it appears in these Regulations - invoices issued in accordance with any provision [Paragraphs] of this Article. [85]