Saudi ZATCA E-Invoicing (Fatoorah) Phase 2: What Saudi Businesses Need to Do Now
Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) requires every VAT-registered business to integrate with the Fatoorah platform. Phase 2 (Integration) is rolling out by waves — what your wave means and how to comply.
Saudi Arabia introduced VAT in 2018 and e-invoicing in 2021. The system, branded Fatoorah, is run by the Zakat, Tax and Customs Authority (ZATCA). It runs in two phases:
- Phase 1 (Generation) — live since 4 December 2021. Every VAT-registered business issues structured electronic invoices instead of paper.
- Phase 2 (Integration) — rolling out by waves since January 2023. Each wave covers a turnover band; in-scope businesses integrate their invoicing system with the ZATCA Fatoorah platform for clearance (B2B) or reporting (B2C).
How clearance works
For B2B ("standard") invoices, you generate the invoice in your system and submit it to ZATCA in real time. ZATCA validates and stamps it (the invoice receives a cryptographic stamp and a UUID). Only stamped invoices are valid; you deliver the stamped XML or PDF/A-3 to the customer.
For B2C ("simplified") invoices, the flow is reporting: you generate, share with the customer immediately, and report to ZATCA within 24 hours.
Mandatory fields
- Supplier name, address and VAT registration number.
- Customer details (VAT number for B2B).
- Invoice number — unique per supplier.
- Issue date and time, supply date.
- Line items with description, quantity, unit price, VAT rate.
- Per-line VAT amount and totals in SAR.
- QR code (mandatory on simplified invoices, mandatory on standard invoices in Phase 2).
- Cryptographic stamp from ZATCA (Phase 2).
- UUID assigned by your system.
What this means for SMEs
- Confirm your wave by checking ZATCA notifications on the Fatoorah portal — waves are announced six months in advance.
- Pick an integrated invoicing tool that emits XML in the ZATCA UBL profile and signs/stamps via the ZATCA APIs.
- Validate every customer's Saudi VAT number (15 digits, starts with 3 and ends with 03).
- Retain stamped XML for 6 years per VAT Implementing Regulations.
How Hisabi helps
Hisabi already structures Saudi invoices with the right ZATCA fields, bilingual EN+AR layout, and the QR code on every PDF. ZATCA Phase 2 API integration is on the 2027 roadmap, and we cover the broader GCC unified VAT framework so businesses operating in both KSA and the UAE keep one ledger.