Invoice Details

Enter your invoice details above to calculate VAT and view the compliance checklist.

How to Calculate ZATCA VAT in Saudi Arabia

1

Step 1: Enter Your Invoice Subtotal

Enter the amount before VAT in SAR. This is the price of your goods or services without tax, also known as the net amount.

2

Step 2: Select Your VAT Rate

Choose the applicable VAT rate: 15% (standard for most goods and services), 0% (zero-rated for healthcare, education, and exports), or Exempt (for financial services and residential rent).

3

Step 3: Choose Invoice Type

Select B2B if you are invoicing another business that has a VAT number. Select B2C if you are selling to an individual consumer. The compliance checklist will adjust based on your selection.

4

Step 4: Add Discounts (Optional) and Calculate

Enter any discount amount in SAR. The VAT is calculated on the discounted amount: (Subtotal - Discount) × VAT Rate. Click Calculate to see the VAT amount, total, and compliance checklist.

5

Step 5: Review Your Compliance Checklist

Review the ZATCA compliance checklist showing every required field for your invoice type. Make sure your invoice system includes all these elements to avoid penalties during ZATCA audits.

Phase 1 vs Phase 2 E-Invoicing Explained

ZATCA's e-invoicing implementation is divided into two phases: Phase 1 (Generation) — Started December 2021. All VAT-registered businesses must generate, store, and share e-invoices using a compliant system. No direct integration with ZATCA is required at this stage, but invoices must include mandatory fields and be stored for audit purposes. Phase 2 (Integration) — Rolled out in waves from 2023 onwards based on revenue thresholds. Businesses must integrate their invoicing systems directly with ZATCA's Fatoora platform for real-time reporting. Invoices are automatically shared with ZATCA upon generation. This phase also requires cryptographic QR codes on all invoices. Key differences: Phase 1 is about compliant generation and storage. Phase 2 adds real-time integration, QR codes, and automated reporting to ZATCA.

Quick Comparison

Phase 1: Generate compliant e-invoices → Store them → Show on request Phase 2: Generate compliant e-invoices → Auto-report to ZATCA → QR code on every invoice If your company revenue exceeds SAR 500 million, you are in the first Phase 2 wave. Check ZATCA's official schedule for your integration deadline.

Frequently Asked Questions About ZATCA VAT & E-Invoicing

Is ZATCA e-invoicing mandatory for freelancers in Saudi Arabia?
Yes, ZATCA e-invoicing is mandatory for all VAT-registered taxpayers including freelancers. Phase 1 requires compliant e-invoice generation and storage. Phase 2 deadlines depend on your revenue. Register with ZATCA if you haven't already.
What is the VAT rate in Saudi Arabia for 2024?
The standard VAT rate is 15%, applicable to most goods and services. Zero-rated (0%) applies to healthcare, education, medicines, and exports. Certain financial services and residential real estate rentals are exempt from VAT.
What is the difference between ZATCA Phase 1 and Phase 2?
Phase 1 (Generation) requires businesses to generate and store compliant e-invoices. Phase 2 (Integration) adds real-time integration with ZATCA's Fatoora platform, cryptographic QR codes on all invoices, and automatic reporting of every transaction.
Do I need a QR code on my invoice in Saudi Arabia?
Yes from Phase 2 onwards. All tax invoices and simplified tax invoices must include a ZATCA-compliant cryptographic QR code. The QR code encodes seller name, VAT number, date, total, VAT amount, and a digital signature for authenticity verification.
What are the penalties for ZATCA e-invoicing non-compliance?
Penalties include up to SAR 50,000 per violation for specified e-invoicing offenses. ZATCA can also suspend your VAT registration and impose additional fines during audits. Non-compliant businesses may face delayed invoice processing and customer disputes.
How do I calculate VAT for my Saudi invoices?
Formula: VAT Amount = (Subtotal - Discount) × (VAT Rate / 100). Total = Subtotal - Discount + VAT. Example: 10,000 SAR subtotal, 15% VAT, no discount → VAT = 1,500 SAR, Total = 11,500 SAR.
What is the difference between B2B and B2C invoicing for ZATCA?
B2B invoices (Tax Invoices) require seller and buyer VAT numbers, buyer name, and detailed line items. B2C invoices (Simplified Tax Invoices) only need the seller VAT number and basic invoice data. Both require QR codes in Phase 2.

Related Business Tools

Freelance Income Calculator

Calculate your freelance income, ZATCA compliance costs, and net earnings after VAT and deductions.

Nitaqat Simulator

Simulate how Nitaqat Saudization ratios affect your company's classification and visa processing capabilities.

CR Cost Estimator

Estimate your Commercial Registration (CR) renewal costs including chamber fees, professional license, and municipal charges.

Zakat Calculator

Calculate your Zakat obligation based on Saudi Zakat regulations for businesses and individuals.

This calculator provides estimates based on ZATCA regulations and Saudi VAT Law. Compliance requirements may vary based on your business type, revenue threshold, and ZATCA classification. We recommend consulting a ZATCA-approved tax advisor for official guidance. This is not legal or tax advice.

Last updated: July 2026 · Based on ZATCA regulations & Saudi VAT Law