2026-03-15·
7 min
ZATCA Tax Invoice vs Simplified Invoice — When to Use Each?
ZATCA
Tax Invoice
Simplified Invoice
Many business owners are confused: do I issue a tax invoice or a simplified invoice? The answer depends on the customer type and transaction value, and getting it wrong has legal consequences.
The Core Difference
| Criterion | Tax Invoice (B2B) | Simplified Invoice (B2C) |
|---|---|---|
| For customer | VAT-registered company or entity | Individual or unregistered entity |
| ZATCA mechanism | Clearance (prior approval) | Reporting (within 24 hours) |
| Buyer VAT number | Mandatory | Not required |
| QR code | Required | Required |
| Digital signature | Required | Required |
| Input tax deduction | Buyer can deduct | Buyer cannot deduct |
How POS SAAS Automatically Selects Invoice Type
When adding a VAT-registered customer (with their tax number) in POS SAAS, the system automatically issues a tax invoice and sends it for clearance. For unregistered customers it issues a simplified invoice and sends it for reporting — all without any manual decision from the cashier.