New ZATCA Provision: Branch-Specific CR Numbers in Saudi VAT Compliance

Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) has introduced a new requirement for businesses operating multiple branches across the country. This change impacts how Commercial Registration (CR) numbers are handled in sales invoices. Previously, businesses in Saudi Arabia used a 15-digit VAT number that remained the same across all their branches. However, each branch—whether in Riyadh, Jeddah, or Dammam—has its own unique Commercial Registration (CR) number. Until now, many companies used a centralized CR number in their systems, applying the same CR number across all branches when issuing invoices. With this new provision, ZATCA now mandates that each branch must use its own CR number while generating or printing sales invoices. In response to this, we have introduced a new system enhancement to accommodate this requirement.

The New Requirement: CR Number for Each Branch

ZATCA’s new rule ensures that businesses properly differentiate their branch-specific Commercial Registration numbers in all invoices. This means that when a branch in Riyadh issues an invoice, it should display Riyadh’s CR number, and similarly, branches in Jeddah or Dammam must reflect their respective CR details.

To align with this requirement, our system now provides a structured solution that enables businesses to include branch-specific CR numbers automatically.

Solution: New CR Fields in Cost Center under Accounting Dimensions

To meet this requirement, we have enhanced the system by adding new fields in the Cost Center under Accounting Dimension, allowing businesses to store and apply the correct CR number for each branch.

Key Updates in the System

1. Introduction of New Fields in Cost Center
• We have added a CR Registration Type and CR Registration Number field in the Cost Center under Accounting Dimension section.
• A new Branch Address field has also been introduced, allowing each branch to have its specific details recorded.
2. Branch Selection During Invoice Creation
• While generating a sales invoice, users can now select the branch they are invoicing from.
• Based on the selected branch, the system will automatically fetch the corresponding CR number and display it on the invoice.

ZATCA’s new provision for branch-wise CR number inclusion in invoices marks an important step in enhancing transparency and compliance for businesses in Saudi Arabia. With this latest system update, companies can now efficiently manage branch-specific CR details and ensure that their invoices meet the latest VAT regulatory standards.

By implementing these changes, businesses can stay ahead of compliance requirements, avoid penalties, and ensure accurate financial reporting.

If you have any questions or need further guidance on this update, feel free to reach out!