Complete guide to e-Invoicing using Wafeq



In December 2021, the Zakat, Tax, and Customs Authority (ZATCA) announced a new invoicing system that requires all taxpayers to issue and store invoices electronically through a system compliant with ZATCA's requirements. This is what we offer at Wafeq. But first, let’s dive into the details of the e-invoicing system:

What is E-Invoicing?

Taxpayers residing in Saudi Arabia are required to convert their manual invoices and notes into electronic formats to enable the exchange and processing of e-invoices and notes between sellers and buyers in an organized electronic system.

E-Invoicing with Wafeq

Wafeq is the ideal solution for issuing e-invoices. Wafeq is approved by ZATCA for e-invoicing.

It’s important to note that there are two types of tax invoices:

• Standard E-Invoices: These are typically issued for business transactions.
• Simplified E-Invoices: Issued from a company to its customers.

E-invoicing applies to all VAT-registered individuals and entities issuing tax invoices on behalf of suppliers. Non-resident VAT registrants are exempt.

How to Issue an E-Invoice on Wafeq?

1. Create an Account: Start creating an account on Wafeq. Click "Start for free" or "Login" at the top left of the homepage.
2. Enter Personal Details: Provide your name and role in the organization.
3. Enter Company Information: Fill in your company details, including name, number of employees, currency, country, and VAT registration status.

Learn more about: How to link your Wafeq account to the Fatoorah portal.

Two Phases of E-Invoicing on Wafeq



Phase 1: QR Code Generation

• After creating a Saudi company account on Wafeq, the system will automatically generate e-invoices compliant with Phase 1 requirements, including a QR code.
• During Phase 1, invoices are not sent to ZATCA.
• Ensure your VAT number is entered in the company details section for accurate QR code generation.

The QR code contains the following data:

• Supplier’s name
• Supplier’s VAT number
• Invoice date and time
• Invoice amount
• VAT amount

To verify the QR code's validity, use ZATCA’s official app:

• For Android
• For iPhone

Phase 2: Integration

Phase 2 of e-invoicing began in early 2023, with ZATCA notifying taxpayers at least 6 months in advance. This phase aims to link businesses’ invoicing systems automatically with the national e-invoicing platform (Fatoorah), ensuring invoices are issued in a compliant electronic format and sent to ZATCA. The second phase of the billing system in Saudi Arabia is being rolled out gradually for taxpayers. Implementation phases have been categorized into groups based on the business's annual VAT-eligible revenue. Taxpayers will be notified of the deadline for the tax assessment based on their group.

Read our comprehensive article on Phase 2 of e-invoicing in Saudi Arabia.

FAQs About E-Invoicing in Saudi Arabia

What is the difference between a tax invoice and an e-invoice?

A tax invoice is a document issued to record a commercial transaction, including details of applicable taxes (e.g., VAT), used for tax and financial purposes. An e-invoice is a digital version of an invoice created, sent, and processed electronically, saving time and reducing manual errors. While an e-invoice can include tax details, it focuses on digital automation and integration with systems like ZATCA for compliance.

How to create an e-invoice?

With Wafeq, you can easily create accurate and tax-compliant e-invoices:

1. Enter customer details: name, address, and contact information.
2. Add goods/services: Include a detailed description, quantities, and prices.
3. Calculate taxes: Ensure applicable taxes (e.g., VAT) are added correctly.
4. Include payment terms: Specify the due date and accepted payment methods.
5. Add a QR code: This is generated automatically by Wafeq.
6. Review the invoice: Check for accuracy before sending.
7. Send the invoice: Deliver it electronically via email or the invoicing platform.

How do I create a Sadad invoice?

You can easily create Sadad invoices using the advanced e-services provided by the Saudi Ministry of Justice through the Najiz portal:

• Log in: Use your Najiz or National Single Sign-On (SSO) account using the Nafath App.
• Select the "Execution" bundle: Navigate to the services related to execution.
• Choose "Request to Issue a Sadad Invoice."
• Select the execution request linked to the invoice.
• Choose "Request to Issue a Sadad Invoice" from the "Other Requests" list.
• Specify the reason and enter the required details.
• Submit the request: Click "Submit Request" to issue the invoice.
• Notify the beneficiary: A text message will be sent to inform them of the invoice issuance.