How to Cancel or Edit an e-Invoice in Saudi Arabia?

It’s not rare that you’ve issued an invoice under Saudi Arabia’s e-invoicing rules, send it to the buyer, and it goes into the system. Then you spot a mistake, the amount is wrong, or the VAT rate was misapplied, or you chose the wrong customer.

You might instinctively think: “Ok, let’s just cancel this invoice or edit it.” But that’s not how the system works in Saudi Arabia. Now what to do? Should you panic? Well, that’s why we’re here today, to give you the exact answer.

Short answer up front: You cannot edit or delete an e-invoice once it’s been issued and shared under Saudi Arabia’s e-invoicing rules. Because the e-invoicing regime is built to create a clear, immutable audit trail, the invoice you issued becomes part of the tax record; altering or deleting it would break the chain of trust. The only lawful path is to issue a linked note to correct the situation.

So, fixes are done by issuing electronic credit notes or debit notes that are explicitly linked to the original invoice.

The Rules: What ZATCA Requires

Let’s have a look at what ZATCA’s e-invoicing programme allows and what it strictly prohibits:

Prohibited actions

• Cancelling or editing an invoice after it has been issued and shared with the buyer in ways that remove or alter the original invoice record.

• Deleting an e-invoice once it is accepted, or tampering with its core fields.

Allowed, and required, correction path

• If you spot an error in an invoice that has been issued, you must issue a credit note or a debit note, whichever is appropriate, and this must reference the original invoice number and date.

• The note must follow the same structured format as an e-invoice under Fatoora.

Credit Note & Debit Note: When and How to Use

Now we know, we can’t just “fix” the original invoice. What we do instead depends on the nature of the error. Here’s how to  decide between issuing a credit note and issuing a debit note:

When to use a credit note

• You issued too much: the price or quantity is higher than it should have been.

• You applied a higher VAT rate than necessary.

In these situations, you issue a credit note, referencing the original invoice number and date, stating clearly the reason for the correction and showing the corrected values.

When to use a debit note

• You under-billed: the quantity or price was lower than it should have been.

• You applied a lower VAT rate, resulting in less VAT declared than required.

Here, you issue a debit note, again referencing the original invoice and providing the corrected amounts, reason, etc.

Phase 2 Realities and What They Mean

If your business is operating in KSA under Phase 2 (started 1 January 2023) of the e-invoicing rollout, you face additional technical and process realities. Keep these in mind:

• Under Phase 2, you must integrate your e-invoicing system with ZATCA’s system for instant clearance of B2B invoices.

• Resubmissions: If ZATCA rejects an invoice for technical or validation reasons, you must correct and regenerate the invoice rather than trying to edit the original one.

ICV and Resubmissions

• ICV (Internal Counter Value): In the KSA’s e-invoicing system, every electronic invoice or credit & debit note is always tagged with an Internal Counter Value (ICV). Just think of this as a kind of digital tracker that keeps your invoice sequence in perfect order. For example, if one invoice fails to clear, you can’t simply resend it using the same counter number. Here, the system will automatically move to the next one.

Step-By-Step: How to Fix an Invoice

1. Before you issue the invoice

• Check everything, including the customer VAT registration number, address, and correct classification.

• Check the item codes, prices, VAT rate applied, totals, and rounding carefully.

• For simplified invoices, preview the QR code.

• Preview the XML (if applicable) to ensure you have all required fields.

This pre-issue check dramatically reduces corrections later.

2. Create a credit or debit note that’ll reference the original invoice ID and reason. Also, don’t forget to include the original invoice date and the correct amounts. Ultimately, ensure the CN/DN follows ZATCA XML/data dictionary requirements.

3. Submit CN/DN to ZATCA via your integrated e-invoice solution. Let ZATCA clear the note and then store every single document related to the invoice (at least six years).

Avoid the Common Mistakes

Here are some typical pitfalls and how you can guard against them:

• Trying to edit or delete issued invoices: That leads to non-compliance and possible penalties.

• Issuing a note without referencing the original invoice number/date: It breaks traceability, and your audit trail may suffer.

• Re-using the same ICV after a failed invoice: That breaks the sequencing rules. Ensure you always increment.

• Ignoring the reason for an invoice clearance failure: ZATCA will provide an error code or message. You must fix the root cause ( wrong VAT rate, missing field) and regenerate the invoice.

• Failing to archive the data correctly: That may create exposure during inspections.

• Choosing software solutions that allow tampering: Make sure your system is totally configured.

So,  if you're operating in Saudi Arabia and using the Fatoora system, here’s what you should remember: you cannot simply cancel or edit an invoice after it’s already issued and shared. The correct path is to issue a credit or debit note that references the original invoice.

Tally Prime supports Saudi e-invoicing workflows (generation and integration both), and many businesses use it to handle Phase 2 requirements.

As an IT solution provider in the MENA region, at Penieltech, we offer Tally implementations. If you need help with integration, localization, or managed services, as experienced local implementers, we are ready to assist you wholeheartedly.