To export services to Saudi Arabia from India, invoice your Saudi client in SAR or USD with export-compliant wording, get paid into your Indian AD bank, and list each invoice on your monthly EDF with "Saudi Arabia" in the Part 2B country column. Expect your client to ask about withholding tax and your tax residency — Saudi payers often deal with these before releasing payment, so have your paperwork ready early.
Key takeaways
- Saudi invoices go on the same monthly EDF as all your other exports — one row each, due 30 days from the end of the invoice month.
- Invoice in SAR or USD as agreed; record the actual currency and amount in Part 2B.
- Your client may deduct tax at source on payments to foreign service providers. India and Saudi Arabia have a DTAA, which may affect how much is withheld — confirm with your CA.
- Large clients and government-linked buyers can run long approval cycles. Track each invoice's 9-month realisation date.
Invoicing a Saudi client
Currency
Saudi clients commonly pay in Saudi riyal (SAR) or US dollars. Agree the currency in the contract, invoice in it, and record that same currency in your EDF row. If the client pays in a different currency from the invoice, note it in remarks and in your reconciliation.
What the invoice should show
A clean export invoice for a Saudi client carries:
- your Indian business name, address, GSTIN and PAN;
- the client's legal name and address in Saudi Arabia, and any tax identification number they ask you to show;
- invoice number and date, currency and amount;
- a specific description of the service and the contract or purchase order reference;
- if you export under LUT: "Supply meant for export under LUT without payment of IGST".
Larger clients, in Saudi Arabia as elsewhere, often want their purchase order number on every invoice and may send back invoices without it. Ask at onboarding. Our export invoice generator has fields for contract and PO references.
What your Saudi client may ask you for
| Request | Why they ask | What you do |
|---|---|---|
| Purchase order or contract reference on invoices | Internal approval and audit | Add it to every invoice |
| Tax residency certificate (TRC) | To consider DTAA benefits on withholding | Apply through the Indian income-tax process; your CA can help |
| Supporting tax forms or declarations | Their own withholding compliance | Ask exactly which form; don't guess |
| Bank details on letterhead | Vendor registration | Provide your Indian account and SWIFT details |
| Company documents | Vendor onboarding | Certificate of incorporation, PAN, GST certificate |
A tax residency certificate is the item that most often causes delays, because it takes time to obtain. Start before your first invoice if you can.
Withholding tax and the DTAA
Saudi Arabia may require clients to withhold tax on certain payments to non-resident service providers. Whether that applies to your service, and at what rate, depends on Saudi rules and on the India–Saudi Arabia DTAA. We won't quote rates here because they depend on the type of service and the treaty position, and they can change.
What matters for you:
- Agree in the contract whether fees are gross or net of any withholding.
- Ask for the withholding certificate or proof of tax paid whenever the client deducts tax.
- Talk to your CA about claiming credit in India for tax withheld abroad. That involves Form 67 and your income-tax return.
For the EDF, withholding means you receive less than the invoice value. Show the invoice amount and the NRV you expect to realise, and note the withholding in remarks. Ask your bank how it wants the shortfall evidenced when you close the entry.
Payment routes
Most Saudi clients pay by international bank transfer (SWIFT) to your Indian bank account. Some may use their own banks' correspondent arrangements; intermediary banks can deduct charges along the way. Your Indian bank receives the money, records the purpose code and issues a FIRA, FIRC or bank advice. That bank is normally your AD bank for the EDF.
Ask your client to quote the invoice number in the payment details. It makes matching far easier, especially when one transfer covers several invoices.
Filling the EDF for Saudi invoices
Saudi invoices are not special on the form. They're rows in Part 2B alongside your other clients.
- Country column: Saudi Arabia.
- Currency and amount: SAR or USD, as invoiced.
- NRV: what you expect to realise after any withholding and known charges.
- Description and SAC: the same as on the invoice.
- Field 1.17 (country of final destination): if all your invoices that month are to Saudi Arabia, enter it; if you have clients in several countries, follow your bank's guidance.
Worked example: a Hyderabad IT services firm
Deccan Arc Systems Pvt Ltd provides managed IT support to a Riyadh-based retail group and a Jeddah logistics firm. In June 2027 it raises:
| Invoice | Client | Currency | Amount | Approx. INR | Notes |
|---|---|---|---|---|---|
| DAS/27-28/112 | Retail group, Riyadh | SAR | 96,000 | ₹21.5 lakh | PO quoted; client withholds tax |
| DAS/27-28/113 | Logistics firm, Jeddah | USD | 9,800 | ₹8.2 lakh | Paid gross |
Both go on Deccan Arc's June EDF, alongside its UK and US invoices, due 30 July 2027. For invoice 112, the NRV reflects the expected withholding, with a remark. When the payment arrives, Deccan Arc sends its bank the invoice, FIRA, withholding certificate and matching instructions, since the invoice exceeds ₹10 lakh. Invoice 113 can be closed through a periodic declaration of realisation.
The Riyadh client's approvals usually take around 90 days. That leaves a comfortable margin inside the 9-month realisation window, which for invoice 112 runs to March 2028.
Protecting the 9-month window
Services must be fully realised within 9 months from the invoice date (12 months for rupee invoices). With large Saudi buyers, delays usually come from approvals, missing PO numbers or vendor registration issues rather than unwillingness to pay. Fix those at onboarding. If an invoice is stuck, follow up in writing and, if needed, ask your AD bank for an extension with reasons before the deadline. Our article on protecting your 9-month window has a step-by-step plan.
This is general information, not legal or tax advice. Saudi tax rules and treaty benefits should be confirmed with a qualified adviser.
Frequently asked questions
Should I invoice Saudi clients in SAR or USD?
Either can work. Agree the currency in the contract, invoice in it, and enter the same currency in your EDF row. Consider which currency your client's finance team pays most easily, since that can speed up approvals.
Will my Saudi client deduct tax from my invoice?
They may, depending on the type of service and Saudi rules, with the DTAA potentially affecting the rate. Agree in the contract whether fees are gross or net, ask for the withholding certificate, and talk to your CA about claiming credit in India.
Do I need a separate EDF for Saudi clients?
No. One EDF per month covers all your service exports to one or more recipients. Saudi invoices are rows in Part 2B with Saudi Arabia in the country column.
Is GST charged on services exported to Saudi Arabia?
An export of services that meets the Section 2(6) IGST Act conditions is a zero-rated supply. Most exporters invoice under LUT without IGST. Confirm your place of supply and conditions with your CA.
What if withholding means I never receive the full invoice amount?
Note the withholding in your EDF row's remarks and keep the certificate. When you close the entry, show your bank the reason for the shortfall. Ask your bank how it prefers this documented.
Bottom line
Saudi clients are straightforward on the EDF — one row per invoice, Saudi Arabia in the country column — but plan early for PO numbers, withholding and your TRC. Prepare the monthly form in the free EDF form generator.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.