Tax and e-invoicing rules by country

Each country comes with its own currency, tax rules and, in Saudi Arabia, e-invoicing. When your agency or a branch is in a country, the system sets these up for you. You can change your own rules at any time in Settings → Taxes.

At a glance

In every country, prices include tax: the tax is worked out of the price the customer sees, so the total stays as priced.

What happens when a branch is in a country

When you add a branch, or the agency starts, in a country:

1. The country's currency is proposed for the branch. If the agency has no exchange rate for it yet, an approximate starting rate is added in Settings → Currencies. Check it before you sell in that currency.
2. If the agency has no tax rules for that country yet, the country's rules below are added in Settings → Taxes, and the country's default rule becomes the branch's Tax rule for new lines.
3. The branch's Short code starts as the country code, for example BH or SA.
4. The VAT number and, for a commercial registration, the Registration number are checked against the country's format when you save the branch.
5. E-invoicing starts Off everywhere. In Saudi Arabia it turns on by itself when the branch's production device is ready.

A booking line gets its tax rule in this order: the line's own rule, the trip's rule, the branch's rule, then the default rule of the branch's country. A line with none of these has no tax.

Bahrain

• Currency: BHD (Bahraini dinar), 3 decimals.
• Tax rules: VAT 10% (standard rate, the default), Zero rated, international transport (0%) and Outside the scope of VAT (0%).
• VAT number: 15 digits.
• Commercial registration: a number like 12345-1.
• E-invoicing: none.

Saudi Arabia

• Currency: SAR (Saudi riyal), 2 decimals.
• Tax rules: VAT 15% (standard rate, the default), Zero rated, international transport (0%, ZATCA reason VATEX-SA-34-2, international transport of passengers) and Outside the scope of VAT (0%, VATEX-SA-OOS).
• VAT number: 15 digits that start and end with 3.
• Commercial registration: 10 digits.
• E-invoicing: ZATCA (Fatoora). Every invoice, credit note and debit note is signed with the branch's device certificate. Standard tax invoices (B2B) are cleared by ZATCA before they reach the buyer. Simplified tax invoices (B2C) are reported to ZATCA within 24 hours.
• Each zero rated, exempt or out of scope rule needs a reason from ZATCA's official list (the VATEX-SA codes). For VATEX-SA-OOS you write the reason in your own words.
• A branch with e-invoicing on needs these seller details before it can issue invoices: legal name in English and in Arabic, VAT number, registration number, street, building number (4 digits), additional number (4 digits), district, city and postal code (5 digits).
• E-invoicing needs a currency with 2 decimals, and the branch always numbers its own documents.
• A Saudi branch starts with e-invoicing off. Invoices issued while it is off are not e-invoices and are never sent later. When a production device finishes onboarding in Settings → E-invoicing (ZATCA), e-invoicing turns on by itself. If someone turns it on while no device is ready, invoices wait and are sent in order once one is ready.

United Arab Emirates

• Currency: AED (UAE dirham), 2 decimals.
• Tax rules: VAT 5% (standard rate, the default), Zero rated, international transport (0%) and Outside the scope of VAT (0%).
• VAT number (TRN): 15 digits that start with 100.
• E-invoicing: none.

Oman

• Currency: OMR (Omani rial), 3 decimals.
• Tax rules: VAT 5% (standard rate, the default), Zero rated, international transport (0%) and Outside the scope of VAT (0%).
• VAT number: OM followed by 10 digits.
• E-invoicing: none.

Qatar

• Currency: QAR (Qatari riyal), 2 decimals.
• Tax rules: one rule, No VAT (out of scope, 0%).
• An invoice with no tax on it prints as "Invoice", not "Tax invoice".
• E-invoicing: none.

Kuwait

• Currency: KWD (Kuwaiti dinar), 3 decimals.
• Tax rules: one rule, No VAT (out of scope, 0%).
• An invoice with no tax on it prints as "Invoice", not "Tax invoice".
• E-invoicing: none.

Jordan

• Currency: JOD (Jordanian dinar), 3 decimals.
• Tax rules: Sales tax 16% (standard rate, the default), Zero rated, international transport (0%) and Outside the scope of VAT (0%).
• E-invoicing: none.

Egypt

• Currency: EGP (Egyptian pound), 2 decimals.
• Tax rules: VAT 14% (standard rate, the default), Zero rated, international transport (0%) and Outside the scope of VAT (0%).
• E-invoicing: none.

Any other country

A branch in a country that is not listed above gets one rule, No VAT (out of scope, 0%). Choose the branch's currency yourself, and add the tax rules you need in Settings → Taxes.

Reasons for rules without tax

Outside Saudi Arabia, a zero rated, exempt or out of scope rule can use one of these reasons, printed on invoices:

Tax invoice or simplified tax invoice

In every country with tax, Who gets a tax invoice (B2B) in Settings → Taxes decides who gets a standard tax invoice. It starts as Companies with a VAT number; everyone else gets a simplified tax invoice. A branch can override it with Tax invoice (B2B) for. Each printed invoice shows its title in Arabic and in English.