ZATCA e-invoicing for sports clubs and gyms

ZATCA calls Phase 1 the Generation Phase and Phase 2 the Integration Phase. Phase 1 changed how invoices are produced: through a compliant electronic solution, with extra fields, and no more handwritten or word-processor invoices. Phase 2 changed where they go: the solution must connect to FATOORA and send invoices in ZATCA’s XML format.

Two words matter in Phase 2. Clearance applies to standard tax invoices: your system sends the invoice to FATOORA, FATOORA validates and stamps it, and only then can it be shared with the buyer. Reporting applies to simplified tax invoices: you give the customer the invoice at the point of sale and submit it to FATOORA within 24 hours of generating it, according to ZATCA’s detailed guidelines.

ZATCA describes the tax invoice (often called the standard invoice) as the document for most business-to-business and business-to-government sales. The simplified tax invoice is for sales mostly to consumers. In a sports venue, nearly every booking by a player, parent or member is a consumer sale, so the simplified invoice is the everyday document.

• Simplified tax invoice: issued to individuals, carries a QR code, is given to the customer at the time of sale and reported to FATOORA within 24 hours.
• Tax invoice: issued to companies, schools and other organisations, carries full buyer details such as the buyer’s VAT number where it has one, and must be cleared by FATOORA before you share it.
• Small business sales: ZATCA’s guidelines allow a simplified invoice for a business buyer only when the taxable value is under SAR 1,000. Above that, issue a tax invoice.

The practical rule for a front desk: if the payer asks for an invoice in a company name, or the sale is under a corporate or school contract, it is a standard invoice and the buyer’s details must be captured before the invoice is issued. Correcting a buyer name after clearance means a credit note and a new invoice.

Once an invoice is issued, the correction is a new document. ZATCA’s guidelines say credit and debit notes must be issued with a reference to the original invoice, and the type of note follows the type of invoice it adjusts. A refund on a simplified invoice is a simplified credit note, reported like the invoice. A refund on a cleared tax invoice is a credit note that also goes through clearance.

• Full refund of a cancelled booking: one credit note for the full amount, linked to the booking’s invoice.
• Partial refund under a late-cancellation policy: a credit note for the refunded part only.
• Refund as venue credit instead of cash: agree with your adviser how the credit is recorded, since the customer keeps value with you.
• Wrong buyer details on a company invoice: a credit note cancelling it and a new, correct tax invoice.

The common failure is a refund made in the payment gateway with no matching credit note in the books. Your VAT return then overstates sales. Whatever system you use, the refund and the credit note should come from the same action.

In AskFlow, every paid booking, package and membership generates a tax-compliant e-invoice automatically through your accounting system: Wafeq, Qoyod, Daftra, Zoho Books, Odoo or Oracle, including ZATCA e-invoicing where it applies. Credit notes sync the same way. Venues that only need ZATCA e-invoicing can use eInvoiceMe on its own.

Refunds go back to the original payment method or become venue credit, per case. Point-of-sale sales flow into the same reports and invoicing as bookings. Recurring contracts with schools and companies are quoted and invoiced to the organisation. If your accounting system is not on the list, integrations are something AskFlow builds on request.