B2B vs B2C: Overview
ZATCA has different requirements for Business-to-Business (B2B) and Business-to-Consumer (B2C) invoices. Understanding these differences is essential for compliance.
B2B Invoices (Standard Tax Invoice)
Required for transactions between VAT-registered businesses:
- Buyer information: Must include buyer's name, address, and VAT number
- Phase 2: Requires clearance from ZATCA before sending to buyer
- Format: XML format submission
- Reporting: Real-time or near-real-time
B2C Invoices (Simplified Tax Invoice)
For transactions with end consumers:
- Buyer information: Not required (optional)
- Phase 2: Reporting only (no clearance needed)
- Format: QR code is sufficient for the customer
- Reporting: Within 24 hours
Key Differences Table
| Feature | B2B | B2C |
|---|---|---|
| Invoice Type | Standard | Simplified |
| Buyer VAT Required | Yes | No |
| ZATCA Clearance | Yes | No |
| QR Code | Required | Required |
Mixed Transactions
Some businesses do both B2B and B2C. Your invoicing system must handle both types correctly based on the customer.