Updated:
Two phases
Phase 1 (generation) started on 4 December 2021: VAT-registered businesses must issue invoices from a compliant electronic system — handwritten or simple word-processor invoices are no longer allowed. Phase 2 (integration) started on 1 January 2023 and is rolled out in waves; selected businesses integrate their systems with ZATCA’s FATOORA platform.
Integration waves
ZATCA notifies businesses at least six months before their wave, based on VAT-subject revenue in a reference period. The thresholds have been lowered wave by wave, so most VAT-registered businesses will be brought in over time.
What an e-invoice needs
Standard tax invoices (B2B) and simplified tax invoices (mostly B2C) have different required fields. Phase 2 invoices are in XML or PDF/A-3 with embedded XML, carry a QR code and cryptographic stamp, and are either cleared (B2B) or reported within 24 hours (B2C).
- Seller and buyer VAT numbers (buyer for B2B)
- Invoice number, date and time
- Line items, VAT rate and VAT amount
- QR code
Frequently asked questions
Does Phase 2 apply to me now?
Only once ZATCA has notified you of your wave. Phase 1 applies to all VAT-registered businesses.
Can I use any accounting software?
It must meet ZATCA’s technical requirements; check that your provider is compliant.
What about credit notes?
Credit and debit notes follow the same e-invoicing rules.
Sources: Zakat, Tax and Customs Authority (ZATCA); E-Invoicing Regulation and its implementing resolutions.
General information as at the date above, not advice. Rules change — confirm your position with a qualified accountant.