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How to Resolve Errors in e-Invoices in Saudi Arabia?

Updated on: Apr 25th, 2023

14 min read

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The government of Saudi Arabia intended to implement e-invoicing through its tax authority Zakat, Tax and Customs Authority (ZATCA), in phases. Phase 1 has been implemented w.e.f 4th December 2021, and announced that phase 2 would be implemented in waves w.e.f 1st January 2023.

ZATCA clarified that it classifies the taxpayers for phase 2 and notifies them six months before their wave. Accordingly, as of now, it announced three waves as follows:

Wave 1 under phase 2: Value Added Tax (VAT) registered taxpayers whose revenue exceeded 3 billion SAR for the year ending 2021 fall under wave 2 w.e.f 1st January 2023.
Wave 2 under phase 2: Businesses registered under Saudi VAT with more than SAR 500 million and less than SAR 3 billion turnover in 2021 fall under wave 2 w.e.f 1st July 2023.
Wave 3 under phase 2: KSA VAT registered business with more than SAR 250 million and less than SAR 500 million turnover in 2021 or 2022 fall under Wave 3 w.e.f 1st October 2023.

Hence, the applicable taxpayers started generating phase 2 compliant invoices. However, they might face some errors while generating e-invoices. This article lists a few errors and explains how to resolve them.

Common errors in phase 2 of Saudi e-invoicing and resolutions

Below are the frequent errors faced by taxpayers during the implementation of phase 2 e-invoicing in Saudi Arabia:

Error message	Error description	How to resolve the error?
VAT line amount for line is not correct. Please correct.	The calculated VAT line amount is not correct.	Check if the Invoice line net amount * Invoiced item VAT rate = VAT Line Amount or not.
Unable to execute Business Rules validation.	Some of the mandatory fields are missing in the request body.	Check if all the mandatory fields are present in the request.
Each VAT breakdown (BG-23) shall have a VAT category tax amount (BT-117).	VAT tax amount should be provided for each category code.	Check to see if the VAT category tax amount is provided for the relevant category provided in the request.
Each VAT breakdown (BG-23) shall have a VAT category taxable amount (BT-116).	VAT taxable amount should be provided for each category code.	Check to see if the VAT category taxable amount is provided for the relevant category provided in the request.
Schema validation failed; XML does not comply with UBL 2.1 standards in line with ZATCA specifications.	XML validation doesn't comply with ZATCA standards.	One or more mandatory tags are missing in the request payload.
The buyer name (BT-44) must be present in the tax invoice and associated credit notes and debit notes (KSA-2, position 1 and 2.	The buyer name is not present in the tax invoice.	Provide the buyer's name in the tax invoice.
The VAT category tax amount (BT-117) In a VAT breakdown (BG-23) where the VAT category code (BT-118) equals "Exempt from VAT" shall equal 0 (zero).	Where the VAT category code is exempt from tax, and the VAT tax amount is not Zero.	Where the VAT category code is exempt from tax, check whether the VAT tax amount is zero or not.

Click here to know more about phase 2 errors and solutions.

Errors in phase 1 of Saudi Arabia e-invoicing and resolutions

Below are a few of the errors faced by the taxpayers during phase 1 of Saudi Arabia's e-invoicing:

Error message	How to resolve the error?
Address additional number must be 4 digits long. Please correct the address additional number.	Please note additional number has been made mandatory if the buyer is (a) A registered VAT dealer and (b) within the Kingdom of Saudi Arabia. The additional number should be 4 digits only. If the additional number is not readily available, the same can be found on National Address Certificate.
Billing reference is mandatory if invoice type is credit/debit note. Please supply billing reference.	Billing Reference ID means 'Original Invoice Number'. The original invoice number is required to be mandatorily provided where the document issued by the supplier is either a credit note or debit note.
Building number is mandatory for buyers if the Country code is SA. Please supply building number.	Please note the building number has been made mandatory if the buyer is (a) a registered VAT Dealer and (b) within the Kingdom of Saudi Arabia. The building number should be 4 digits only. If the building number is not readily available, the same can be found on National Address Certificate.
Debit and credit note must contain the reason for this invoice type issuance. Please supply issuance reason for credit or debit note.	Reason must be provided in case of credit and debit notes issued, per Article 40 of KSA VAT regulations. Instances where a credit or debit note is issued: Cancellation or suspension of the supplies after its occurrence, either wholly or partially In case of essential change or amendment in the supply, which leads to the change of the VAT due; Amendment of the supply value, which is pre-agreed upon between the supplier and consumer; In case of goods or services refund. Condition - (a) If the invoice type code is ‘Credit Note or Dedit Note’, this is required. (b) Not required to be provided if invoice type code is ‘Tax Invoice’.
Invalid amount specified for sum of invoice line amount, please correct the amount.	To calculate the sum of the invoice line net amount, check the formula below. The sum of invoice line net amount = Σ Invoice line net amount, i.e., calculated by the sum of all invoice line net amounts in the invoice without VAT. Note: (1) Amount should be up to 2 decimal places (2) Maximum can be 14 digits
Invalid amount specified for total amount due, please correct the amount.	To calculate the payable amount, check the formula Amount due for payment = Invoice total amount with VAT - paid amount
Invalid amount specified for the total amount without VAT, please correct the amount.	The total amount without VAT should be equal to the total amount exclusive of the VAT amount, and the amount should be up to 2 decimal places
Invalid amount specified for total VAT amount, please correct the amount.	This issue is being observed in cases where the VAT amount is not correctly calculated. If the VAT rate is 15%, in those cases, the VAT amount should be equal to the Taxable amount X VAT rate /100. Any deviation from the above values would result in an error.
Invalid amount value, amount value must be positive for allowance charge base amount.	All values in the document should be positive. The ZATCA is not accepting negative values.
Invalid amount value, amount value must be positive for invoice line VAT total.	All Values in the document should be positive. The ZATCA is not accepting negative values.