The inclusion of a QR Code in e invoice is a crucial requirement in Saudi Arabia’s e-invoicing system, mandated for both simplified and tax e-invoices. However, the QR Code in e invoice in Saudi Arabia must adhere to specific standards, and non-compliance can result in violations and financial penalties.
So, what is a QR Code in e invoice, how does it work, and how does it meet the requirements of Saudi Arabia’s e-invoicing system? We’ll answer these questions and more in this article.
What is a QR Code in E Invoice?
A QR Code is a type of matrix barcode made up of a pattern of black and white squares, which can be read automatically by a QR Code scanner or the camera on a smartphone.
In the context of e-invoicing in Saudi Arabia, the Zakat, Tax, and Customs Authority (ZATCA) mandates that the barcode in e-invoices be encrypted in a way that it cannot be read by standard cameras or decoding apps. It must be readable only by the ZATCA application or the KSA Invoice QR Reader.
Contents of a QR Code in E-Invoices in Saudi Arabia
QR Codes in e-invoices in Saudi Arabia do not require a web link. Instead, scanning them via the ZATCA app reveals the following information:
- Seller’s name.
- Seller’s VAT registration number.
- Date and time of the invoice or notice issuance.
- Total VAT amount.
- Total invoice amount, including VAT.
Read more: VAT Tax in Saudi Arabia: A Guide to Compliance & E-Invoicing
The Importance of QR Codes in the E-Invoicing System
The QR Code plays a vital role in organizing e-invoices in Saudi Arabia, ensuring transparency and compliance with ZATCA’s requirements. Its main benefits include:
Enhancing Transparency and Improving User Experience
The QR Code allows both customers and regulatory authorities to easily access invoice details with a quick scan using the ZATCA app, facilitating easy electronic storage.
Accelerating Audits
QR Codes provide instant access to information and enable quick verification of invoice authenticity without manual review.
Role of QR Codes in Enhancing Security
QR Codes play a key role in protecting financial data from forgery, making transaction tracking accurate and secure.
When Should the QR Code Be Added to the E-Invoice?
For simplified e-invoices (used in B2C transactions between businesses and individuals) sadding QR Codes has been mandatory since the first phase of e-invoicing, with additional elements required in the second phase.
For tax invoices (used in B2B transactions between two businesses), QR Code inclusion is optional in the first phase of e-invoicing but becomes mandatory with the second phase “Integration Phase.”
Read more: Your Guide to Full Integration with Fatoora Portal
Penalties for Not Including a QR Code in E-Invoices
Failure to include a QR Code in an e-invoice in Saudi Arabia, or failing to meet ZATCA’s specific standards, can result in warnings to the business to correct the error.
If repeated, penalties may be imposed based on the type of violation and its frequency. Fines for e-invoicing violations can reach up to 50,000 SAR.
E-Invoicing Solutions and Technical Support from EZ Integrated
Accurate inclusion of QR Codes in e-invoices is essential for full compliance with ZATCA’s standards. EZ Integrated provides reliable e-invoicing solutions, ensuring your business is smoothly connected to the ZATCA system.
At EZ Integrated, we offer more than just the ideal e-invoicing solutions for connecting your business to the ZATCA platform. We also provide complete technical support to guarantee full compliance and secure integration with the FATOORA portal.
If you are looking for an authorized e-invoicing solutions provider that offers seamless integration and ongoing support, EZ Integrated is here to assist you at every step. Contact us today for a free consultation and discover how we can meet your e-invoicing requirements effectively and reliably.