Article 23 of the Saudi Value Added Tax Law

المادة 23 من نظام ضريبة القيمة المضافة · الفصل التاسع: الفواتير الضريبية

The article refers to the Regulations the contents, form and deadlines of tax invoices, summary and simplified invoices, the exception for exempt supplies, acceptance of invoices, and issuing through others.

Official text (Arabic)

This article has not been amended since the law was issued.

تحدد اللائحة ما يأتي:

1 - محتويات وشكل الفواتير الضريبية، ومهل إصدارها.

2 - الشروط والضوابط اللازمة لإصدار فواتير ضريبية ملخصة أو مبسطة.

3 - شروط وضوابط استثناء الخاضع للضريبة من إصدار الفواتير الضريبية بالنسبة إلى التوريدات المعفاة من الضريبة.

4 - شروط وإجراءات قبول الفواتير من حيث الشكل.

5 - الشروط اللازمة للموافقة للخاضع للضريبة على الاستعانة بغيره لإصدار الفواتير الضريبية نيابة عنه.

This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers

Article 23 explained in plain English

A tax invoice, as Article 1 defines it, is an invoice issued for taxable supplies in line with the requirements set by the Law and the Regulations. This article specifies which of those requirements are left to the Regulations, five matters:

The contents of tax invoices, their form and the deadlines for issuing them.
The conditions and controls for issuing summary or simplified tax invoices.
The conditions and controls for excepting a taxable person from issuing tax invoices for exempt supplies.
The conditions and procedures for accepting invoices as to form.
The conditions for approving that a taxable person may use another party to issue tax invoices on its behalf.

What can be taken from the article:

The exception from issuing an invoice in item (3) concerns exempt supplies and is subject to the conditions of the Regulations.
Issuing an invoice through another person on behalf of the taxable person needs approval under conditions set by the Regulations.
The article does not state the details to be shown on the invoice or the deadlines; these are in the Regulations.

The invoice has a direct effect on deducting the tax: Article 22 refers to the Regulations the means of proving the tax where a tax invoice is unavailable or does not meet the conditions. Businesses are therefore advised to review the Regulations' requirements for their invoices, and to consult a lawyer or adviser specializing in tax when needed.

Practical example

A restaurant in Abha wants an accounting firm to issue its tax invoices on its behalf. Under the article, agreement between the two parties is not enough; approval must be obtained under the conditions the Regulations set for a taxable person's use of another party to issue invoices.

Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.

How we write and review content

A question about Article 23 of Value Added Tax Law?

Describe what happened and specialist lawyers answer. You can write in English.