Guide
Booking Saudi VAT bills: what to check before you claim input VAT
Before you book 15% input VAT on a supplier bill in Saudi Arabia, check that it is a tax invoice from a VAT-registered supplier: it shows the supplier's 15-digit VAT number, an invoice number and date, the VAT amount in SAR and, on e-invoices, a ZATCA QR code. If the supplier has no VAT number, the VAT is part of the cost, not a claim.
What is the VAT rate in Saudi Arabia?
The standard VAT rate in Saudi Arabia is 15%. Most supplier bills a company receives carry 15% VAT, which a VAT-registered buyer can usually recover as input VAT when the bill is a valid tax invoice.
What should a supplier tax invoice show?
- The words tax invoice (فاتورة ضريبية)
- The supplier's name, address and VAT registration number
- Your company's name and, for business-to-business invoices, your VAT number
- An invoice number and the date of issue
- A description of the goods or services, quantity and price
- The VAT rate, the VAT amount in SAR and the total
How do I check the supplier's VAT number?
A Saudi VAT registration number has 15 digits and starts and ends with 3, for example 3XXXXXXXXXXXXX3. A number in another format is often a commercial registration (CR) number instead, which does not make the bill a tax invoice. When in doubt, check it on the ZATCA website: see how to verify a VAT number.
What is in the ZATCA QR code?
E-invoices under ZATCA's Fatoora rules carry a QR code that holds the seller's name, the seller's VAT number, the invoice date and time, the invoice total with VAT and the VAT amount. Scanning it is a fast way to confirm the printed figures, and a mismatch is a reason to look again. Try the free ZATCA QR reader.
Tax invoice or simplified invoice?
A simplified tax invoice is the shorter receipt-style invoice, allowed for supplies under SAR 1,000 or to individuals. It does not show the buyer's details. ZATCA's invoicing guideline lists a correctly issued simplified tax invoice as acceptable evidence for input VAT when a full tax invoice is not available; for business purchases over SAR 1,000, ask the supplier for a full tax invoice. More in simplified invoices and input VAT.
What if the supplier is not VAT-registered?
Then there is no input VAT to claim. Any amount the supplier called VAT is part of the cost of the purchase and should be booked into the expense or stock account, not the input VAT account.
How do I book a purchase return?
A return or credit note reduces the original purchase. Book it as a supplier credit against the same supplier, reverse the VAT that was claimed, and take returned stock items back out of stock. Do not book it as a new expense with a minus sign hidden inside.
How BookMyBills applies these checks
BookMyBills reads the VAT number, the QR code and the VAT amount on every bill a team member sends on WhatsApp. It books input VAT only on valid tax invoices, keeps VAT in the cost when the supplier is not registered, books returns as supplier credits and asks your accountant when something does not add up.
This guide is general information, not tax advice. Rules change; check ZATCA guidance or ask your tax adviser for your case.
Common questions
Does it read the ZATCA QR code on Saudi e-invoices?
Yes. When a bill carries a ZATCA (Fatoora) QR code, BookMyBills reads the seller name, VAT number, date, total and VAT from it and checks them against the printed bill.
How does it handle VAT?
It reads the ZATCA QR and the supplier VAT number, and books 15% input VAT only on a valid tax invoice from a VAT-registered supplier. No VAT number on the bill, or VAT you can't claim (like entertainment or gifts), and the VAT goes to cost instead of input VAT.
Does it handle returns and supplier credits?
Yes. A purchase return or credit note is booked as a supplier credit against the right supplier, with the VAT reversed, instead of a new bill.