𝐙𝐀𝐓𝐂𝐀 𝐄𝐱𝐩𝐨𝐫𝐭 𝐈𝐧𝐯𝐨𝐢𝐜𝐞

An Export Invoice is a tax invoice issued by a business in Saudi Arabia when selling goods or services to customers outside the Kingdom. The invoice must include specific details, as required by ZATCA, and the transaction will generally be zero-rated for VAT purposes.

• Zero-rated VAT: This means the VAT rate applied to exported goods or services is 0%. Although no VAT is charged to the customer, the exporter may still be eligible to reclaim VAT on input goods or services used to produce the exported item (input VAT credit).

Key Requirements for VAT Compliance in Export Invoices

• Shipping Documentation: Ensure that the goods are actually exported outside of Saudi Arabia. Customs documentation, like bill of lading or airway bills, may be required to verify the export transaction.
• Currency: While invoices are usually issued in SAR, businesses can issue the invoice in the customer's currency (USD, EUR, etc.). The total value in SAR must be calculated and recorded in the system, and conversion rates should be applied if the transaction is in a foreign currency.
• Customs Procedures: Ensure that the export is properly processed through Saudi customs, and all export duties (if applicable) are taken care of. The customs declaration must be completed and retained for audit purposes.

Export VAT Treatment under ZATCA Regulations

• Zero-Rated VAT: Exported goods and services are subject to zero-rated VAT. This means no VAT is charged to the customer, but the exporter can still claim input VAT credits for any VAT paid on goods or services used to produce the exported item.
• Conditions for Zero-Rating: To apply the zero rate, the export must be a genuine export. The goods or services must be supplied to a customer outside of Saudi Arabia, and the transaction should be documented as such.
• Input VAT Recovery: If a business pays VAT on inputs (e.g., materials, supplies, or services) used to produce the exported goods, it can recover this VAT from ZATCA through its VAT return.

Calculating VAT on Export Invoices

Aramex Saudi export 50 laptops to Lincoln Enterprise, USA of Worth 2000 SAR. At Zero VAT rate.

• Total Value of Goods = Unit Price × Quantity
• Total Value of Goods = 2,000 × 50 = SAR 100,000
• VAT in this case is SAR 0
• Total Invoice Amount = Total Value of Goods + VAT Amount
• Total Invoice Amount = 100,000 + 0 = SAR 100,000