Implementing ZATCA E-Invoicing in a Saudi Property Management SaaS

At Amlaki (amlakire.com), ZATCA compliance was one of our most critical features. Here is how we implemented VAT and e-invoicing for Saudi real estate.

The VAT Rules for Real Estate

Saudi real estate has unique VAT rules:

• Residential rent: Exempt (0%)
• Commercial rent: 15% VAT
• Property sales: Exempt from VAT, subject to 5% RETT

Mixed-use buildings must separate residential and commercial units automatically.

ZATCA E-Invoicing Phases

Phase 1 (Generation): Issue and store electronic invoices locally. Phase 2 (Integration): Connect with ZATCA platform via API for validation.

Implementation

Each unit has a unitType field (RESIDENTIAL or COMMERCIAL). When generating an invoice the system checks unit type, applies correct VAT rate, generates ZATCA-compliant XML, and stores both tax-inclusive and tax-exclusive amounts.

Penalties

Late filing: 5-25% of tax due. No e-invoicing: financial penalties.

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