What is ZATCA e-invoicing (Fatoora)?
Fatoora is Saudi Arabia's e-invoicing regime run by ZATCA, implemented in two phases. Phase 1 (Generation, since 4 December 2021) requires all resident VAT taxpayers to generate invoices electronically — handwritten or plain word-processor invoices are prohibited. Phase 2 (Integration, waves since 1 January 2023) requires integrating your invoicing system with ZATCA's platform: standard (B2B) invoices are cleared in real time before issue, while simplified (B2C) invoices are reported within 24 hours.
Phase 2 waves and requirements
ZATCA enrols taxpayers into Phase 2 in waves by annual revenue, notifying each wave months in advance. Waves began with businesses above SAR 3 billion and have progressively reached much smaller revenue bands. Technical requirements include:
- Invoices in XML or PDF/A-3 with embedded XML
- UUID, cryptographic stamp and hash chain per document
- QR codes (mandatory on simplified invoices)
- Arabic as the invoice language (other languages may accompany it)
ZATCA e-invoicing at a glance
| Invoice type | Flow | Timing |
| Standard tax invoice (B2B/B2G) | Clearance — validated by ZATCA before issue | Real time |
| Simplified tax invoice (B2C) | Reporting — submitted after issue | Within 24 hours |
Wave assignment is based on VAT-liable revenue; check your notification status on the ZATCA portal.
How to choose ZATCA-compliant software
- Native Phase 2 integration — clearance and reporting APIs, not PDF generators
- Cryptographic stamping and hash chaining handled automatically
- Bilingual Arabic/English invoice layouts
- Full VAT accounting behind the invoice for return filing
- POS support for simplified invoices with 24-hour reporting