E-Invoicing

​​Preparing Your Business

ZATCA Phase 1

ZATCA Phase 2

Simplify Tax Invoice

B to B

Tax Invoice

B to C

ZATCA Phase 1

For December 4th, 2021, taxpayers should:

1. Stop issuing manual invoices: handwritten invoices and invoices written using text editing tools are not considered e-invoices

2. Use a compliant electronic invoicing solution: e-invoicing solutions must comply with the requirements and specifications published under the e-invoicing laws and regulations and can be summarized for Phase 1 as follows:

  • Ability to generate e-invoices with the required elements including QR codes
  • Absence of prohibited functionalities:
  • Uncontrolled access
  • Tampering of e-invoices or logs​
  • Multiple invoice sequences

3. Ensure invoices include the required additional fields:


1. Tax Invoices (B2B): The VAT registration number of the buyer if the buyer is a registered VAT taxpayer in addition to the invoice type (description as a title). QR code can be added (Optional).

2. Simplified Tax Invoices (B2C): A mandatory QR code generated by the taxpayer's E-Invoicing solution based on ZATCA's specifications, in addition to the invoice type (description as a title).

ZATCA Phase 2

In addition to Phase 1 requirements found here. for Phase 2 enforceable starting January 1st, 2023 in waves, taxpayers should:

1. User a compliant invoicing solution with phase two requirements:

  • Ability to generate and store e-invoices in the required format (XML) or (PDF/A3 with embedded XML) with the required fields
  • Ensure the e-invoicing solution is compliant with the e-invoicing requirements including the ability to connect to the internet

2. Integrate e-invoicing solution with ZATCA's Fatoora portal:

What is e-invoicing?

What is E-Invoicing (FATOORAH)?
Electronic invoicing is a procedure that aims to convert the issuing of paper invoices and notes into an electronic process that allows the exchange and processing of invoices, credit notes & debit notes in a structure electronic format between buyer and seller through an integrated electronic solution.
What is an electronic invoice?
A tax invoice that is generated in a structured electronic format through electronic means. A paper invoice that converted into an electronic format through coping, scanning, or any other method is not considered an electronic invoice.
Tax Invoice
An invoice that is usually issued by a Business to another Business (B2B), containing all tax invoice elements.

Simplified Tax Invoice

An invoice that is usually issued by a Business to consumer (B2C) containing all simplified tax invoice elements.​
How does E-Invoicing (FATOORAH) work?
E-Invoicing will be rolled-out in two phases in KSA (more details about the phases here​).​
For the first phase, enforced as of December 4th, 2021, for all taxpayers (excluding non-resident taxpayers), and any other parties issuing tax invoices on behalf of suppliers subject to VAT, electronic invoice issuance will be very similar to invoices generated prior to 4 Dec 2021, with invoices issued thr​ough a compliant electronic solution and including additional fields depending on the type of the transaction.
For the second phase, enforceable starting January​ 1st, 2023 in waves, the electronic solution must be integrated with ZATCA's systems and e-invoices should be generated in the required format.​
What are the required fields for the e-invoice in phase one (generation phase) and phase two (integration phase)?​