ZATCA E-INVOICING

An invoice is usually rejected when it does not match the rules defined by ZATCA. This can happen if the format is incorrect, the required fields are missing, or the data does not follow the ZATCA structure. In many cases, invoices are rejected because the system used to generate them does not follow the e-invoicing standards for Saudi Arabia.

A hashing error appears when the system cannot verify the security value of the invoice. Hashing is used to make sure the invoice has not been changed after it is created. If the system detects that the hash value does not match, it means there was an issue with invoice generation, data structure, or security validation. This error usually happens when the ERP or e-invoicing tool does not create the invoice in the exact format required by ZATCA.

This usually happens when the ERP system is not integrated properly with the ZATCA platform. The integration stage is the second phase of e-invoicing, and it requires technical connectivity between the ERP and ZATCA. If the ERP is outdated, not configured correctly, or not connected to an approved e-invoicing solution, invoices will not be sent automatically.

Yes. ZATCA requires every tax invoice, credit note, and debit note to be created and stored in the approved electronic format. If a business issues invoices in paper, PDF, Word, Excel, or any unstructured format, it is considered non-compliant. Non-approved formats may result in fines, warnings, or additional penalties depending on the level of violation. ZATCA expects all taxpayers under VAT to follow the correct format without exception.

ZATCA e-invoicing is the process of generating and storing invoices electronically in the standard format defined by the Zakat, Tax and Customs Authority of Saudi Arabia. All taxpayers who are registered under VAT in Saudi Arabia must follow this rule. It also applies to anyone who issues tax invoices on behalf of VAT-registered businesses.

Your format is compliant if it follows ZATCA’s structure. It should be generated electronically, stored in XML or PDF/A3 with embedded XML, and include mandatory details like seller and buyer info, VAT numbers, invoice totals, and a QR code for simplified invoices. Your ERP must also support Phase 2 features like UUID, digital signatures, and reporting through the Fatoora platform. If your system can generate and send invoices to ZATCA without errors, you are compliant.

A valid e-invoice must contain all the fields required by ZATCA. This includes seller and buyer details, VAT information, invoice type, invoice value, description of goods or services, and tax amounts. The invoice must be generated in the official electronic structure and stored in a machine-readable format.