E-Invoicing for Construction Projects
The construction industry has unique invoicing requirements including progress billing, retention, and project-based accounting. Understanding how to apply ZATCA e-invoicing rules is crucial.
Progress Billing and Milestones
Construction projects often use milestone-based billing. Each progress invoice must:
- Reference the original contract
- Show work completed percentage
- Include proper VAT calculation
- Have ZATCA-compliant QR code
Retention Invoices
Retention amounts (usually 5-10%) have special treatment:
- VAT is due when the retention invoice is issued
- Retention release must be separately invoiced
- Clear reference to original project invoices
Subcontractor Invoices
Main contractors receiving invoices from subcontractors must ensure those invoices are ZATCA-compliant for VAT deduction purposes.
Project Documentation
Keep all project-related invoices linked together for audit purposes. FatooraPlus allows project-based invoice grouping and reporting.