The Saudi ZATCA e-invoicing system has a key technical rule, your invoice must be a special type of PDF with a hidden XML file embedded inside it. What is the importance of XML file in ZATCA Invoices? This might sound complicated, but it’s actually a very smart solution designed for two things: automation and security.
Think of the invoice file as having two layers:
Layer 1: The PDF/A-3 (For Humans)
- What it is: This is the professional, visual document you see, print, and save.
- Why it’s needed: Humans need an invoice that is easy to read, print, and understand. The “A-3” part ensures the file is a non-editable format, meaning the invoice can’t be tampered with once created, which is important for legal archiving.
Layer 2: The Embedded XML (For Machines)
- What it is: XML is a structured data file,think of it as a perfectly organized list of all the invoice details (seller name, VAT amount, total, item prices), all labeled clearly with machine-readable “tags.”
- Why it’s needed: This is the game-changer for speed and compliance.
The Power of the Embedded XML:
Instant Automation (Zero Error):
- When the buyer receives the single PDF file, their accounting or ERP system instantly grabs the embedded XML.
- The machine automatically reads all the data and inputs it directly into the company’s books.
- Result: No more slow, manual data entry, and absolutely no human errors.
Unbreakable Security & Compliance:
- The ZATCA system uses the XML file to validate everything. It checks that all required information is there and that the calculations are correct.
- The XML also carries the Cryptographic Stamp (Digital Signature), which acts like an iron-clad proof of the invoice’s authenticity.
- Result: ZATCA can automatically verify every transaction, ensuring tax compliance and preventing fraud.
In short: ZATCA requires the embedded XML so the seller only has to send one file that serves a dual purpose, it’s a professional, readable document for people, and it’s a perfectly structured, secure data package for computers.
For more information on ZATCA e-invoices, contact +966 56 927 1692