Generating QR Code on e-Invoices in KSA

e-Invoicing in the Kingdom of Saudi Arabia (KSA) will be implemented in two phases, the implementation date of Phase 1 is 4th December 2021, and Phase 2 is 1st January 2023. e-Invoicing compliant electronic systems must generate Quick Response (QR) codes.

What is a QR code?

A QR code is a type of matrix barcode with a pattern of black and white squares. It contains basic invoice data and is included in the printed invoice and the electronic invoice. It is readable by a QR code scanner or the camera of smart devices.

e-Invoice QR code requires a specialised app to scan and does not require a link to any web page, unlike some QR codes. To validate the printed invoice, the QR code needs to be present in the human-readable format.

What is the purpose of the QR code?

Apart from providing quick information about a particular invoice, QR code in e-invoicing serves the following purpose:-

• Enables basic validation of electronic invoices and electronic credit/debit notes.
• Helps customers verify the authenticity of the invoices and ensures that the invoices comply with the Zakat, Tax and Customs Authority (ZATCA) requirements.

What is the applicability of the QR code?

I.  B2C Invoices

In simplified e-invoice for B2C transactions, QR codes must be included with basic invoice and taxpayer information.

II.   B2B Invoices

QR code is optional for e-invoices issued for B2B transactions in Phase-1. However, from Phase-2, QR will also be mandatory on B2B invoices. The taxpayer’s solutions will generate the QR code value, and the e-Invoicing Integration Portal will update the code during the clearance process. The QR code will then be printed on the human-readable invoice by the taxpayer.

The invoice-wise and phase-wise applicability of the QR Code is demonstrated in the table given below:

What information must be contained within the QR code?

I. B2C Invoices

Certain minimum required fields must be shown after scanning a QR code in a simplified tax invoice.

It is mandatory to generate and print QR codes for simplified e-invoices and associated credit/debit notes that must contain the following fields:

• Seller’s name
• VAT registration number of the seller
• Timestamp of the electronic invoice or credit/debit note (date and time)
• Electronic invoice or credit/debit note total (with VAT)
• VAT total
• ​Hash of XML electronic invoice or credit/debit note (Phase 2)
• Cryptographic stamp generated by the taxpayer’s e-Invoice generating solution (from Phase 2)
• Public key of the e-invoice generating solution which is used to generate the cryptographic stamp
• ZATCA portal cryptographic stamp of the public key of the e-invoice solution

II. B2B Invoices

As discussed earlier, QR code is optional on B2B invoices in Phase 1 and becomes compulsory from Phase 2. In the 2^nd phase, for B2B e-invoices as well as electronic credit/debit notes, it is mandatory to generate and print QR code that must contain the following fields:

• Seller’s name
• VAT registration number of the seller
• Timestamp of the electronic invoice or credit/debit note (date and time)
• Electronic invoice or credit/debit note total (with VAT)
• VAT amount
• Hash of XML electronic invoice or credit/debit note
• Cryptographic stamps generated by ZATCA’s platform for integrated tax invoices and associated credit/debit notes.
• Public key of the ZATCA platform, which is used to generate the cryptographic stamp

How is a QR code generated?

The e-invoicing solution of the suppliers must generate QR codes for all types of e-invoices. Thus, QR codes are automatically generated electronically by the e-invoice solutions and are not provided by ZATCA.