Glossary of invoice and tax terms
Plain definitions of their general meaning. For legal detail in your country, check the tax authority or a licensed accountant.
- Tax invoice
- A document issued by a seller registered for VAT, showing the seller's and buyer's details, the tax number, the date, the lines, the VAT amount and the total.
- Try the related tool →
- Simplified invoice
- A shorter invoice used mostly for sales to consumers, needing fewer details than a full tax invoice. The details differ between countries.
- Credit note
- A document that reduces the amount owed after an invoice, for example a return, a discount or a correction. It is recorded with a negative sign.
- Debit note
- A document that increases the amount owed after an invoice, for example to correct a price that was too low.
- Value added tax (VAT)
- A consumption tax collected at each stage of a sale, with a rate that differs between countries. Qatar and Kuwait have no general VAT at the time of writing.
- Try the related tool →
- Tax registration number
- A business's VAT registration number, printed on its invoices. Its format differs by country, and checking the format does not prove the number is registered.
- Try the related tool →
- Input and output tax
- Output tax is what you collect on your sales, and input tax is what you paid on your purchases. The difference is what goes in the return.
- Zero-rated and exempt supplies
- A zero-rated supply is taxed at 0% and reported in the return, while an exempt supply is outside the tax. The difference matters for recovering input tax, so ask an accountant.
- E-invoice
- A structured digital invoice that meets a tax authority's rules. In Saudi Arabia it is applied in two phases: generation, then integration with the authority.
- Invoice QR code
- A square code on the Saudi invoice carrying the seller's name, tax number, invoice time, total and VAT amount, readable with any scanner.
- Try the related tool →
- Hijri date
- A date in the lunar calendar. The Umm al-Qura calendar is the official one in Saudi Arabia, and some invoices carry only a Hijri date.
- Try the related tool →
- IBAN
- The international bank account number: a country code, two check digits and the account number. Its length is fixed per country, and its structure can be checked with the check digits.
- Try the related tool →
- Minor unit
- The smaller part of a currency: the Saudi riyal is 100 halalas, the UAE dirham 100 fils, the Qatari riyal 100 dirhams, the Kuwaiti and Bahraini dinar 1000 fils, and the Omani rial 1000 baisa.
- Try the related tool →
- Statement
- A list of an account's movements and balances over a period, from a bank or a supplier. It is compared with the books to reconcile balances.
- Purchase order
- A document a buyer sends a supplier stating what it wants to buy, in what quantity and at what price, and later matched against the invoice.
These are general definitions to explain the terms, not tax or legal advice.