Invoice as a legal document

Simply put

An invoice's value lies in its details: the seller's and buyer's names, the date, the description, quantity, and price, and the VAT number and VAT if the business is registered. In businesses subject to e-invoicing, the invoice is issued electronically according to ZATCA requirements, not by hand.

No entry is accepted in the books without a supporting document, and the invoice is the most important of these documents. Keep invoices organized for the entire statutory retention period, and do not edit an issued invoice: correct it with a credit or debit note.

Example

A supplier claimed 45,000 SAR from a customer and had nothing but a message in a chat app. Had he issued a tax invoice with full details and had the customer sign for receipt, his evidence would have been stronger when claiming, and the customer could have deducted its VAT in his return.

Don't confuse it with