In Saudi Arabia, electronic invoice presentment has become a regulatory obligation for all VAT-registered businesses. With the second phase now in effect, compliance is more critical than ever.
This guide highlights the most common mistakes during e invoice presentment, explains the risks, and offers simple solutions to ensure full and smooth compliance.
Why Errors in Electronic Invoice Presentment Can Be Costly
ZATCA has emphasized that failing to comply with e invoice presentment standards can result in significant fines.
Penalties start at SAR 5,000 and can reach SAR 50,000 depending on the severity of the violation.
Top Mistakes During Phase 1 of Electronic Invoice Presentment
The first phase, known as the “Generation and Archiving Phase”, focuses on correct invoice formatting and content. Yet many businesses still fall into common traps:
1. Missing Mandatory Fields in Electronic Invoice Presentment
Omitting required fields like invoice number, VAT ID, or service details leads to rejection.
The fix? Use an invoicing system that auto-validates mandatory fields before issuing.
2. Ignoring the QR Code Requirement
Simplified invoices must contain a scannable QR code with key data such as invoice number, date, and VAT amount.
Ensure your accounting software automatically generates compliant QR codes.
3. Using an Unsupported Invoice Format
Many businesses still issue invoices in traditional PDF format, which is not allowed.
Only XML or PDF/A-3 formats with a valid digital signature are accepted.
Update your system and work with a solution provider that supports approved formats for electronic invoice presentment.
Also read: E Invoice Mandatory Fields Checklist for Saudi Businesses
Critical Mistakes in Phase 2 of Electronic Invoice Presentment
In Phase 2, businesses must integrate their systems directly with the government’s FATOORA platform. This adds complexity and risk.
1. Failing to Register the Solution Unit
If your technical unit is not registered with ZATCA, all invoices will be rejected.
Coordinate with your solution provider to ensure your system is registered and linked correctly.
2. API Integration Issues in Electronic Invoice Presentment
API errors or misalignment with ZATCA’s specs can block invoice transmission.
Conduct early testing and choose a provider with ongoing technical support.
3. Delays in Sending Invoices After Generation
Tax invoices must be sent instantly, and simplified ones within 24 hours.
To stay compliant, enable automatic transmission in your invoicing system.
4. Manipulating Invoice Sequences
Each e-invoice must have a unique, sequential number.
Any gaps or duplications could be seen as fraud.
Activate automatic sequence locking in your system to ensure compliance.
Also read: Your Simplified Guide to Sending E-Invoices to Customers
How to Avoid Errors in Electronic Invoice Presentment
Proper software alone isn’t enough. Proactive planning and training are essential. Follow these steps:
1. Validate Technical Compliance with ZATCA
Ensure your system supports XML and PDF/A-3 formats, generates QR codes, and attaches a valid e-signature.
2. Train Your Team
Educate your finance staff on e invoice presentment procedures including proper sequencing, transmission timelines, and handling of credit or cancellation notes.
3. Conduct Regular Internal Audits
Review submitted invoices regularly to catch errors early.
Maintain organized invoice backups for audit readiness.
Also read: How to Conduct Effective E Invoice Training for Employees
EZ Integrated: Your Compliance Ally in Electronic Invoice Presentment
EZ Integrated is a ZATCA-certified solution provider offering end-to-end support for flawless electronic invoice presentment.
Our Key Features:
- Secure and direct integration with the FATOORA platform
- Automatic generation of fully compliant e-invoices
- Dedicated technical support team
- Full employee training
- Real-time updates in line with ZATCA regulations
Don’t let small errors lead to big fines. Contact EZ Integrated today for a free consultation and simplify your electronic invoice presentment with total confidence.