Invoice Type Decision for ZATCA Integration – Need Confirmation

XML and business rules
1

Dear team,

As per the documentation, we have implemented the ZATCA integration and it is working fine. However, we have a question regarding the B2C and B2B invoice decision logic.

Currently, our system submits invoices as follows:

  • B2B (Standard): If the customer has a VAT number → ‘0100000’

  • B2C (Simplified): If the customer has no VAT number → ‘0200000’

Is this logic correct? Specifically, if a customer has a VAT number, should it always be considered a B2B (Standard) invoice, or can it be a B2C (Simplified) invoice even if the customer has a VAT number?

According to your documentation, transactions below 1000 SAR may be considered either B2C or B2B, but transactions above 1000 SAR should be B2B only, not B2C. In this case, if a transaction above 1000 SAR occurs without a tax number, our system will send it to ZATCA as a B2C invoice. Could this cause any issues for us as a provider or for the client?

To summarize, our system currently decides as follows:

  • B2B (Standard): Customer has VAT number → ‘0100000’

  • B2C (Simplified): Customer has no VAT number → ‘0200000’

Please confirm if this approach is correct or advise if any changes are needed.

Thank you.

2

@Ali_KMA As per Article 53 of KSA VAT Regulations, you must issue Standard Tax Invoice for all B2B transactions. Simplified Tax Invoice must be issued for all B2C transactions.

For B2B transactions below 1000 SAR, you have an option to issue a Simplified Tax Invoice.