In Saudi Arabia, the way businesses issue invoices has changed dramatically thanks to the Zakat, Tax, and Customs Authority (ZATCA) e-invoicing initiative, also known as “Fatoora.” This system moves away from simple paper invoices to a digital format, and the most important tool for verification is the QR Code. For your business or as a customer, knowing how to verify this little square code is key to ensuring compliance, preventing fraud, and making sure that your ZATCA E-invoice QR Code is Valid.
What is the ZATCA E-invoice QR-Code and Why does it matter?
The QR Code on a ZATCA-compliant e-invoice is not just a random design. It is a digital fingerprint that contains all the essential information about the transaction, encoded in a secure format.
In a few black and white squares, the code holds key details like:
- The Seller’s Name
- The Seller’s VAT Registration Number
- The Date and Time the invoice was issued
- The Total Invoice Amount (including VAT)
- The Total VAT Amount
This data is encoded in a specific way that ensures it hasn’t been tampered with. The presence of a valid, compliant QR code is a sign that the business is following ZATCA rules.
The Simple Way to Check- The Official ZATCA App
The easiest and most official way to check the validity of any e-invoice is by using the mobile application provided by ZATCA itself. This application is designed specifically to read and verify the information hidden within the unique QR codes.
Here is the simple, step-by-step process:
1. Download the ZATCA Mobile Application
Look for the official ZATCA app on your smartphone’s app store (Apple App Store or Google Play Store). This app is free to download and use.
2. Find the Verification Feature
Once you open the app, look for a feature or button usually labeled as ‘Scan QR Code’ or ‘E-Invoice Validation.’
3. Scan the QR Code
- Point your phone’s camera at the QR code printed on your physical invoice or displayed on your electronic invoice screen.
- Make sure the code is clear, well-lit, and fits entirely within the frame shown on your screen. The app should scan and read the code almost instantly.
4. Review the Results
After a successful scan, the app will decode the information and display the key details for you to see. This is where the magic happens!
- If the Invoice is Valid: The app will show a message confirming that the invoice is compliant and will display the essential details (Seller Name, VAT Number, Total Amount, etc.). You should check that these details match the human-readable text on the invoice.
- If the Invoice is Invalid: The app may flag an error, show incomplete data, or indicate that the QR code is not compliant with ZATCA standards. This is a sign that the invoice might not be authentic or was generated by a non-compliant system.
What makes a QR-code valid?
When the ZATCA app checks the code, it is essentially checking two things:
- Readability and Format: Can the code be scanned, and is the data inside formatted exactly as ZATCA requires (using a specific structure called TLV encoding)? If it fails here, the invoice is immediately non-compliant.
- Data Integrity (The Cryptographic Stamp): For many invoices (especially Simplified Tax Invoices), the QR code includes an extra layer of security called a Cryptographic Stamp (a fancy digital signature). This stamp acts like a tamper-proof seal. If someone tries to change the amount or date on the invoice after it was issued, this stamp will break, and the ZATCA scanner will instantly show the invoice as invalid.
What to do if the QR-code fails?
If you scan an invoice from a business, and the official ZATCA app says the QR code is invalid or missing required data, here is what you should do:
- Speak to the Seller: Inform the seller immediately. They may have an issue with their invoicing system that they are unaware of and need to fix.
- Use Another Scanner: You can try a standard third-party QR code reader to see if it decodes the base information. If it decodes into garbled or missing text, the issue is certainly with the seller’s system.
- Report to ZATCA: If a business consistently issues non-compliant invoices, you can report it to ZATCA. This helps the authority ensure all businesses are adhering to the e-invoicing rules, maintaining a fair and compliant environment for everyone in the Kingdom.
By taking a moment to scan the QR code, you are playing an active role in the digital transformation of Saudi Arabia’s tax system, ensuring that every transaction is transparent and legitimate!
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