Accounting technology / Glossary / Saudi Arabia e-invoicing (ZATCA FATOORA)

What is ZATCA e-invoicing in Saudi Arabia?

Definition

ZATCA e-invoicing, called FATOORA, requires taxpayers in Saudi Arabia to issue invoices from compliant electronic systems. Phase 1 started on 4 December 2021. Phase 2, rolled out in waves since 1 January 2023, connects those systems to ZATCA: tax invoices are cleared before they reach the buyer and simplified invoices are reported within 24 hours.

Also calledFATOORAKSA e-invoicing

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Phase 1: 4 December 2021 (generation)
Phase 2: From 1 January 2023 (integration)
Run by: Zakat, Tax and Customs Authority

How ZATCA e-invoicing works

Phase 1, the generation phase, applied to all resident taxpayers from 4 December 2021: invoices come from a compliant electronic system, manual invoices no longer count as tax invoices, and simplified tax invoices, used for sales to consumers, carry a QR code. Phase 2, the integration phase, links the taxpayer's onboarded e-invoice generation solution to the FATOORA platform by API. A tax invoice, used between businesses, is sent in XML for clearance: FATOORA validates it, adds a cryptographic stamp and QR code, and returns it before the invoice is shared with the buyer. A simplified tax invoice is stamped by the taxpayer's own system with a ZATCA-issued certificate and reported in XML within 24 hours. Invoices reach buyers as XML or PDF/A-3 with embedded XML. ZATCA assigns taxpayers to waves by revenue subject to VAT and gives at least six months' notice. Wave 25, announced on 24 July 2026, covers revenue above SAR 187,500 in any year from 2022 to 2025, with integration due by 1 February 2027. Avalara and Fonoa connect international groups to FATOORA.

Common questions

What is the difference between ZATCA Phase 1 and Phase 2?+

Phase 1, from 4 December 2021, requires invoices to be generated by a compliant electronic system with extra fields and, for simplified invoices, a QR code. Phase 2 adds integration with the FATOORA platform, clearance of tax invoices and reporting of simplified invoices.

What is a cleared invoice in Saudi Arabia?+

A tax invoice that FATOORA has validated and stamped with its cryptographic stamp and QR code. Only a cleared invoice is valid to share with the buyer.

Is a QR code mandatory on Saudi e-invoices?+

Yes for simplified tax invoices since Phase 1, and on tax invoices from Phase 2, when FATOORA adds it during clearance. The QR code is generated by the taxpayer's system, not supplied by ZATCA.

When does my business need to integrate with FATOORA?+

On the date of its wave. ZATCA sets each wave by revenue subject to VAT and notifies taxpayers at least six months ahead; wave 25 covers revenue above SAR 187,500 and is due by 1 February 2027.