ZATCA e-invoicing in Saudi Arabia: the complete guide

ZATCA e-invoicing — branded Fatoora — is Saudi Arabia's mandatory electronic invoicing system. Since 4 December 2021 every VAT-registered resident business must generate and store tax invoices electronically (Phase 1), and since 1 January 2023 businesses have been required, wave by wave, to integrate their invoicing systems with ZATCA's Fatoora platform so that B2B invoices are cleared in real time and B2C invoices are reported within 24 hours (Phase 2).

All taxable persons resident in the Kingdom who are registered for VAT, plus any third party issuing tax invoices on their behalf. Phase 1 applies to all of them regardless of size. Phase 2 applies according to the wave you fall into, which is set by your VAT-liable revenue in the reference years ZATCA names for that wave. Non-resident taxable persons are excluded.

Wave 25, announced on 24 July 2026. It covers businesses whose VAT-liable revenue exceeded SAR 187,500 in 2022, 2023, 2024 or 2025, with an integration deadline of 1 February 2027. It is the first wave to reach below the SAR 375,000 mandatory VAT registration threshold, so it brings voluntarily registered small businesses into Phase 2.

Yes, once your wave is announced. Wave 24 (deadline 30 June 2026) covered every business with VAT-liable revenue above SAR 375,000, and Wave 25 (deadline 1 February 2027) reaches down to SAR 187,500. A business below every announced threshold is still bound by Phase 1 and should expect a further wave; ZATCA gives at least six months' notice.

Clearance is for standard tax invoices (B2B and B2G): your system sends the signed XML to ZATCA, which validates it, applies its stamp and QR code and returns it — only then can you issue it to the customer. Reporting is for simplified tax invoices (B2C): your system signs and issues the invoice immediately and reports it to ZATCA within 24 hours.

Not in the way vendors use the phrase. ZATCA publishes an e-invoicing solution-provider directory and states that it is an indicative list and 'not considered as an approval by ZATCA'. Compliance is established per invoicing unit when the taxpayer onboards it on the Fatoora portal and it obtains a Production CSID. So 'ZATCA-approved' on a sales page means the vendor has listed itself; it does not mean your installation is compliant.

ZATCA's published violations include not issuing or storing invoices electronically, missing QR codes or mandatory fields, deleting or amending issued invoices, and not integrating with Fatoora by your wave deadline. Enforcement is warning-first, with fines escalating for repeated violations within twelve months — the published ranges run from SAR 1,000 up to SAR 50,000 depending on the violation and the repetition. Our penalties article sets out the schedule and the sources.

ZATCA's initiative cancelling fines and exempting penalties has been extended to 31 December 2026. ZATCA's November 2025 announcement expressly included fines for e-invoicing field-control violations, but its 29 June 2026 extension excludes 'fines imposed under Article 45 of the VAT Law', which several advisers read as the article e-invoicing fines fall under. Treat it as unconfirmed and ask ZATCA or your tax adviser directly rather than relying on a vendor page — ours included.

A Cryptographic Stamp Identifier — the certificate ZATCA issues to each invoicing unit so it can sign invoices. Onboarding produces a Compliance CSID first, used to pass ZATCA's compliance checks with sample invoices and notes, and then a Production CSID used for live clearance and reporting. The taxpayer obtains it with a one-time password from the Fatoora portal, and it must be renewed before it expires.

No. Phase 2 is met by software: an ERP, an accounting package, a POS or an e-invoicing middleware that implements the XML, stamping and API integration. What you do need is one onboarded unit per invoicing device or system, so a multi-till shop has more onboarding work than a single-invoicer trading company.

Excel and hand-made templates fail Phase 1 outright. Global accounting tools vary: some have added Saudi localisations or partner integrations for Phase 2, others rely on third-party connectors, and several do not produce Arabic invoices at all. Whatever you use, the test is the same — can it onboard with Fatoora and clear or report a real invoice for your VAT number?

Yes. AmalERP issues bilingual Arabic/English tax and simplified invoices with the Phase 1 QR code, and integrates with ZATCA's Fatoora platform for Phase 2 — standard invoices are cleared in real time and simplified invoices are reported within 24 hours, from a unit onboarded with a Production CSID. We are not listed in ZATCA's solution-provider directory and do not call ourselves 'ZATCA-approved', because ZATCA says listing is not an approval; what matters is your onboarding, which we walk you through.

Integrate as soon as possible rather than waiting for a notice. ZATCA's enforcement is warning-first for a first violation, and a documented, dated plan to onboard is a far better position than none. Start with clean master data and a system that can obtain a Production CSID, because that is the step that cannot be skipped.