Document background
The Bill of Sale Invoice is a fundamental commercial document used in Saudi Arabia for documenting the sale of goods while complying with tax and commercial regulations. This document type became particularly important after the implementation of VAT in Saudi Arabia in 2018 and the introduction of mandatory electronic invoicing (Fatoorah) in 2021. It serves multiple purposes: documenting the transfer of ownership, providing proof of purchase, meeting VAT documentation requirements, and establishing a clear record of the transaction terms. The document must comply with both Islamic commercial principles and modern Saudi commercial law, making it essential for businesses operating in the Kingdom. A properly prepared Bill of Sale Invoice protects both buyer and seller while ensuring compliance with ZATCA requirements and facilitating proper tax reporting.
