If you are a new shop owner or thinking of opening your first store, you have probably heard the words "POS" or "cashier system" many times — but you are not entirely sure what they mean. This article explains everything in simple terms — without complex tech jargon.
1. In Short: What is a POS?
A POS system (Point of Sale) is the tool you use to record sales and issue invoices in your shop.
Think of it as a smart assistant that:
- Records every sale at the press of a button
- Prints an instant receipt for the customer
- Tracks how much inventory you have left automatically
- Calculates the day's sales at closing
- Sends invoices to ZATCA (Saudi tax authority) legally
2. POS vs Traditional Cash Drawer
| Aspect | Cash Drawer | Modern POS |
|---|---|---|
| Recording sales | Pen and paper | Automatic, one button |
| Receipts | Manual or none | Printed instantly + digital |
| Inventory tracking | Monthly manual count | Live, every sale |
| Sales reports | Just count cash | Detailed numbers |
| ZATCA compliance | Now illegal | 100% compliant |
| Theft detection | Hard to detect | Very hard to occur |
3. What Does a POS Consist Of?
A. Software
This is the "brain" — the application that runs on the device. Like GIGAPOS Pro for Windows.
B. Hardware
- Computer or touchscreen — runs the software
- Thermal receipt printer — prints paper receipts
- Barcode scanner — fast product scanning
- Cash drawer — metal cash storage
- Electronic scale — for supermarkets/butchers
4. How It Works in Practice
- Customer brings products to the cashier
- You scan the barcode — name and price appear instantly
- Repeat for each item (takes seconds)
- Press "Complete Sale" — system calculates total + 15% VAT
- Customer pays — cash, card, STC Pay, Apple Pay, or Mada
- Receipt prints with QR Code
- Inventory updates automatically
- Invoice sent to ZATCA within seconds
All in under 30 seconds.
5. Why It's Mandatory in Saudi Arabia
Since 2023, ZATCA requires e-invoicing for all VAT-registered businesses:
- Every invoice must be electronic (XML)
- Must contain a QR Code
- Must be sent to ZATCA within 24 hours
- Manual paper invoices are illegal
Read more: GIGAPOS ZATCA compliance details.
6. How Much Does a POS Cost?
- Free POS: exists but with major limits (ads, sales caps, often no ZATCA support)
- Monthly subscription: SAR 100-300/month = SAR 1,200-3,600 yearly, forever
- Lifetime license: one-time payment (e.g., GIGAPOS Pro at SAR 1,388) and you never pay again
For small shops, lifetime is the smartest choice — pays for itself in less than a year. Detailed comparison.
7. When Should You Start?
Today. ZATCA penalties can reach SAR 5,000 per non-compliant invoice. Download the free GIGAPOS trial now.
Further reading: