Tax Invoice vs Simplified Tax Invoice: What's the Difference?

Many business owners confuse the two types of e-invoice, although each has a different use and different mandatory fields under ZATCA regulations.

The tax invoice (B2B)

Issued when selling to a registered business or entity, and it enables the buyer to deduct input tax. It must include: full seller and buyer details with both tax numbers, issue and supply dates, item descriptions, and per-line tax breakdown. In Phase 2 it must be cleared by the Fatoora platform before being shared (clearance model).

The simplified tax invoice (retail)

Issued to end consumers — in shops, restaurants and points of sale — and doesn't require buyer details. Its key requirement is the QR code enabling verification, and in Phase 2 it must be reported to the Authority within 24 hours.

Quick comparison

• Buyer details: fully mandatory on the tax invoice; not required on the simplified one.
• QR code: mandatory on the simplified invoice since Phase 1; on the tax invoice within Phase 2.
• Input-tax deduction: available to the buyer only with a tax invoice.
• Phase 2 mechanism: pre-clearance for tax invoices; 24-hour reporting for simplified ones.
• Typical use: wholesale and B2B services vs. cashier and POS sales.

In Mawrid you don't have to think about it — the system picks the correct invoice type automatically based on the customer, and guarantees the mandatory fields in both cases.