E-Invoicing (FATOORA) in Saudi Arabia: Phase 2, Waves and the Rules

Key facts

• Phase 1 (generation) since 4 December 2021; Phase 2 (integration) in waves since 1 January 2023.

  Source:ZATCA Resolution 62738 Clause First(1)(A)-(B), p.1 [T02-0206]

• ZATCA notifies each target group at least 6 months before its integration date.

  Source:ZATCA Resolution 62738 Clause Sixth(1)-(2), p.6 [T02-0223]

• A scanned or photographed paper invoice is not an electronic invoice.

  Source:E-Invoicing Regulation Art. 1(1)-(2), p.2 [T02-0202]

• XML is the only format for transmission to ZATCA; PDF/A-3 with embedded XML is an optional copy for the customer.

  Source:ZATCA Resolution 62738 Clause Second(2), p.2 [T02-0210]

• An issued e-invoice can never be edited or deleted — corrections go through credit notes.

  Source:Detailed Guideline v2 s.6.5, p.34 [T02-0229]

• Non-residents are not required to issue e-invoices for their own supplies.

  Source:E-Invoicing Regulation Art. 3(C), p.3 [T02-0201]

FATOORA Phase 2 integration waves (selected)

Revenue thresholds and deadlines as announced by ZATCA for each wave.

Who and what is in scope

• Every taxable person resident in the Kingdom, and any customer or third party issuing a tax invoice on its behalf.

  Source:E-Invoicing Regulation Art. 3(A)-(B), p.3 [T02-0200]

• In scope: standard and zero-rated supplies, exports, intra-GCC supplies, deemed supplies and advance payments. Credit and debit notes wherever the VAT regulations require them.

  Source:ZATCA Resolution 62738 Clause First(5)-(6), pp.1-2 [T02-0207]

• Out of scope: fully exempt supplies, reverse-charge supplies and imports of goods.

  Source:ZATCA Resolution 62738 Clause First(7), p.2 [T02-0208]

How Phase 2 works

• Clearance (B2B): the invoice goes to ZATCA first; ZATCA checks it, stamps compliant invoices, and only then is it shared with the buyer.

  Source:ZATCA Resolution 62738 Clause Second(3)(A), pp.2-3 [T02-0211]

• Reporting (B2C): the business stamps the simplified invoice itself and reports it to ZATCA within 24 hours; the customer can receive it at once.

  Source:ZATCA Resolution 62738 Clause Second(3)(B), p.3 [T02-0212]

• Each invoice carries a UUID and a hash of the previous invoice, forming a chain that shows any deletion; a tamper-resistant counter cannot be reset.

  Source:ZATCA Resolution 62738 Clause Third(2)(C)(3),(5),(7), pp.4-5 [T02-0215]

• A QR code is mandatory on all Phase 2 invoices and notes, adding the XML hash and the ECDSA signature and key to the Phase 1 fields.

  Source:ZATCA Resolution 62738 Annex 1 pp.12-13 [T02-0217]

• Invoice solutions must not allow anonymous access, editing or deleting issued invoices, resetting the counter, or (from Phase 2) exporting the stamping key or changing the time.

  Source:ZATCA Resolution 62738 Clause Third(2)(E), p.5 [T02-0219]ZATCA Resolution 62738 Annex 1 p.15 [T02-0220]

Invoice content and corrections

• A B2B e-invoice shows “Tax Invoice”, a sequential number, issue date and time, seller and buyer details and VAT numbers; Phase 2 adds UUID, previous hash, QR, counter and a seller ID such as the branch CR.

  Source:ZATCA Resolution 62738 Annex 2, Tax Invoice table items 1.1, 2.1-2.5, 3.1-3.3, 4.1-4.4, 5.1-5.3, pp.17-20 [T02-0239]

• Where a B2B buyer is not VAT-registered, Phase 2 needs another buyer ID (CR, national ID and similar). Export invoices need neither.

  Source:ZATCA Resolution 62738 Annex 2 items 5.3-5.4, p.20 [T02-0240]ZATCA Resolution 62738 Clause First(5)(B), p.1 [T02-0242]

• A simplified invoice may be used for a B2B sale only below SAR 1,000.

  Source:Detailed Guideline v2 s.4.2.1(b), p.17 [T02-0227]

• Every credit or debit note references the original invoice number(s); one note may cover a range of invoices.

  Source:Detailed Guideline v2 s.4.3, p.19 [T02-0230]

• Visible invoice data must be in Arabic; other languages may be added.

  Source:Detailed Guideline v2 s.6.6, p.36 [T02-0232]

• Self-billing and third-party billing need ZATCA’s prior approval and their own transaction flags.

  Source:ZATCA Resolution 62738 Annex 2 items 1.2-1.4, pp.17-18 [T02-0241]

Frequently asked questions

Rules cited on this page

Each statement above names the library row it comes from. The law and article, the date the row was last verified against the official source, and a link to the official text where one is held are listed here.