A purchase invoice is the record a business keeps of everything it buys: from whom, in what quantity, at what price and how much VAT it paid. This template has two formats: "Purchase invoice" to record an invoice from a VAT-registered supplier, and "From unregistered seller" for a purchase from someone who issues no invoice. Type the details into the sheet and download it for your files.
In the ready example, goods with a net value of SAR 4,000 carry SAR 600 input VAT, so SAR 4,600 is due to the supplier. Attach the original supplier invoice; it is what supports the VAT you deduct.
How to use the purchase invoice template
- Pick the format: registered supplier, or a purchase from an individual or unregistered supplier.
- Type your business, the supplier, their VAT number and original invoice number into the sheet, then choose the date and payment method.
- Enter the items with quantity and purchase price; the receipt beside the sheet updates net, VAT and total as you type.
- In Advanced, add the internal entry number, goods received note, who received the goods and the due date.
- Tick the attachments and download Word to print or Excel with formulas, then file it with the supplier invoice.
What a purchase invoice is and why you keep it
It proves that goods or services came into the business at a given cost. Your accountant posts purchases or inventory from it, tracks what is owed on credit purchases and matches quantities with what the warehouse received. Without it, deductible input VAT gets lost and supplier statements stop reconciling.
What goes into each section
Supplier details: name, 15-digit VAT number and address as on their invoice. The supplier's invoice number links your record to it, and your internal entry number links it to your books. Items: description, quantity, purchase price and amount (quantity × price). Totals: net, input VAT at 15% of net, and total. Example: 40 bags of rice × 65 = 2,600 and 20 cartons of oil × 70 = 1,400, so net SAR 4,000, VAT 600, total 4,600. In the clothing shop example the net is 3,850, VAT 577.50 and total 4,427.50.
Purchase invoice or sales invoice
The same invoice has two sides: the seller issues it as a sales invoice and pays its output VAT to ZATCA; the buyer receives it as a purchase invoice and deducts its input VAT. So you do not issue a purchase invoice in place of your supplier; you record theirs and keep the original. The exception is buying from an individual who issues nothing: your business writes the bill and the seller signs for payment, as in the example of a display fridge and shelving for SAR 3,100 with no VAT. This template records purchases; issuing your own tax invoice is a separate tool, the tax invoice generator, and the monthly roll-up has its own purchases journal template.
Input VAT and the documents you need
In Saudi Arabia, input VAT is deductible when you hold a tax invoice from a registered supplier issued to your business and VAT number, under the VAT law and its regulations. The 15% in the template is the standard rate; check the deduction conditions with ZATCA before filing, and keep the original invoices for the retention period the law sets.
Common mistakes on purchase invoices
- Claiming input VAT on an invoice from a supplier who is not VAT-registered.
- Leaving out the supplier's VAT number.
- Not attaching the original supplier invoice, or recording the same invoice twice.
- Posting quantities from the invoice without matching them to what was received.
When supplier invoices pile up on the desk
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Frequently asked questions
Is the supplier's receipt enough instead of a purchase invoice?
A receipt proves payment, not what was bought or the VAT. To deduct input VAT you need the registered supplier's tax invoice; this purchase invoice records it and ties it to receiving and posting.
Should I record purchases in a spreadsheet or an accounting system?
A spreadsheet works for a few invoices a month. With many suppliers and invoices, linking them to stock and accounts by hand invites errors, and accounting software helps.
How do I link a purchase invoice to inventory?
In Advanced, enter the goods received note number and who received the goods, and match quantities before posting, so stock reflects what actually arrived.
Is there an Arabic version of this purchase invoice template?
Yes. The Arabic page has both formats with the same figures, and its link is below the template above.