Every VAT-registered business resident in Saudi Arabia must issue electronic invoices through a compliant solution (Phase 1, since 4 December 2021) and, from its wave date, integrate with ZATCA’s Fatoora platform (Phase 2). In Phase 2, tax invoices are cleared by ZATCA before sharing and simplified invoices are reported within 24 hours. Invoices must be in Arabic, carry a QR code, can never be deleted or edited (corrections are made by credit or debit notes), and must be kept for at least 6 years. Wave 25 (VAT revenue above SAR 187,500) must integrate by 1 February 2027.
ZATCA e-invoicing in 10 rules
- All VAT-registered residents must generate invoices and notes electronically with a compliant solution. Paper or scanned invoices don’t count.
- Phase 1 (generation) has applied since 4 December 2021.
- Phase 2 (integration with Fatoora) applies in waves; Wave 25 covers VAT revenue above SAR 187,500 with a deadline of 1 February 2027.
- Tax invoices (B2B) are cleared by ZATCA before you share them.
- Simplified invoices (B2C) are reported to ZATCA within 24 hours.
- Simplified invoices can be used for B2B only below SAR 1,000.
- Invoices must be in Arabic (other languages can be added) and carry a QR code.
- Issued invoices can never be deleted or edited; cancel or correct with a credit or debit note.
- Keep invoices and VAT records for at least 6 years (11 years for capital assets, 15 for real estate).
- Violations start with warnings and can lead to fines of up to SAR 50,000.
The detailed guides
| Topic | Guide |
|---|---|
| How long to keep invoices, storage and archiving | ZATCA invoice retention period |
| Standard vs simplified invoices, SAR 1,000 rule, required fields | Tax invoice vs simplified invoice |
| Phase 2 waves, Wave 25 and how to integrate | Phase 2 waves and deadlines |
| Cancelling and correcting invoices, advance payments | Credit and debit note rules |
| What the QR code contains and who generates it | ZATCA QR code requirements |
| Prohibited functions, security, devices | E-invoicing system requirements |
| What to do when ZATCA or your system is down | Failure scenarios |
| Violations and fines | ZATCA e-invoicing penalties |
| E-invoicing deadlines, waves and fields in more detail | ZATCA e-invoicing Phase 2 guide |
Phase 1 vs Phase 2
| Requirement | Phase 1 (generation) | Phase 2 (integration) |
|---|---|---|
| Start | 4 December 2021 | 1 January 2023 onwards, in waves |
| Format | Any electronic format | XML or PDF/A-3 with embedded XML |
| QR code | Simplified invoices | All invoices (9 tags) |
| Cryptographic stamp | Not required | Required |
| Device onboarding | Not required | Every unit onboarded on Fatoora |
| UUID and hash | Not required | Required |
| Sharing with ZATCA | None | Clearance (B2B) and reporting within 24 h (B2C) |
| Deleting or editing invoices | Prohibited | Prohibited |
Who must comply?
- VAT-registered taxable persons resident in Saudi Arabia, for all transactions that require a tax invoice.
- A customer or third party issuing invoices on behalf of a resident taxable person (self-billing).
- Non-residents are not required to issue e-invoices for supplies taxable in Saudi Arabia.
- Supplies that are entirely out of scope of VAT don’t need a tax invoice. If the same system issues them, the counter and hash chain must still have no gaps.
Language, numbers and currency
- The human-readable invoice must be in Arabic, including notes; other languages may be added.
- Arabic or Hindi numerals are both accepted.
- Technical XML tags are in English, but the invoice data shown must be in Arabic.
- A buyer registered for VAT in Saudi Arabia may have a foreign address.
Dates and deadlines that matter
| Rule | Deadline |
|---|---|
| Issue a tax invoice (B2B) | Up to 15 days after the end of the month of supply |
| Report a simplified invoice (Phase 2) | Within 24 hours of issue |
| Clear a tax invoice (Phase 2) | Before sharing with the buyer |
| Wave 25 integration | No later than 1 February 2027 |
| Notification of your wave | At least 6 months in advance (ZATCA guideline) |
Need help? Our Accounting, VAT & ZATCA team handles VAT and e-invoicing compliance, and LUBA ERP is our own ZATCA Phase 1 and Phase 2 e-invoicing software.
Sources
- ZATCA – Detailed Guidelines for E-Invoicing (PDF)
- ZATCA – Criteria for Wave 25 of the integration phase
- KSA VAT Implementing Regulations – Article 66 (unofficial English text)
- Deloitte – ZATCA e-invoicing violations and penalties
Frequently asked questions
What is ZATCA e-invoicing?
E-invoicing (Fatoora) is ZATCA’s requirement to issue tax invoices and credit/debit notes electronically, in a structured format, through a compliant solution. Phase 1 started on 4 December 2021 and Phase 2 adds integration with ZATCA’s Fatoora platform.
Who must follow ZATCA e-invoicing rules?
All VAT-registered taxable persons resident in Saudi Arabia, plus customers or third parties that issue invoices on their behalf. Non-residents are not required to issue e-invoices.
How long do I have to keep invoices in Saudi Arabia?
At least 6 years from the end of the tax period. Records for capital assets are kept for about 11 years, and for real estate about 15 years.
What is the difference between Phase 1 and Phase 2?
Phase 1 requires generating e-invoices electronically with a compliant solution. Phase 2 adds integration with Fatoora: XML format, cryptographic stamp, device onboarding, clearance of tax invoices and reporting of simplified invoices within 24 hours.
What is the Wave 25 deadline?
ZATCA announced that Wave 25 covers taxpayers whose VAT-able revenue exceeded SAR 187,500 in 2022, 2023, 2024 or 2025, with integration no later than 1 February 2027.
How quickly must simplified invoices be reported?
Within 24 hours of issue, in Phase 2.
When must a tax invoice be issued?
Up to 15 days after the end of the month in which the supply took place. In Phase 2 it must be cleared by ZATCA before it is shared with the buyer.
Can I issue a simplified invoice to a business?
Only if the value of the taxable supply is below SAR 1,000. For B2C sales there is no limit.
Must invoices be in Arabic?
Yes. The human-readable invoice, including notes, must be in Arabic. You can add English or another language.
Is a QR code required on every invoice?
Simplified invoices need a QR code from Phase 1. In Phase 2, standard tax invoices also carry a QR code, generated by ZATCA during clearance.
Can I delete or edit an invoice after issuing it?
No. Deleting or editing issued invoices is prohibited. Correct or cancel with a credit or debit note.
How do I cancel an invoice?
Issue a credit note referencing the original invoice, and a new invoice if the sale still stands.
Is a scanned paper invoice an e-invoice?
No. Paper invoices converted by copying or scanning are not considered e-invoices.
Can I store invoices in the cloud?
Yes, provided ZATCA can access them through a direct link for audits. Other laws, such as NCA controls, may also apply.
Do I need to register each device?
Yes. Every device issuing invoices under the same VAT number must be onboarded on Fatoora in Phase 2.
What happens if ZATCA rejects my invoice?
The invoice is not valid. Fix the errors and submit it as a new document with its own counter and hash.
What if ZATCA’s platform is down?
Keep retrying. For B2B you may share the uncleared invoice and clear it when ZATCA is back; for B2C, report within 24 hours once ZATCA responds.
Can my customer deduct VAT on an uncleared invoice?
No. ZATCA states that uncleared or manual invoices are not eligible for VAT deduction until a compliant invoice is issued.
What are the penalties for e-invoicing violations?
Most violations start with a warning, followed by fines. Published summaries show fines from SAR 5,000 to SAR 50,000, and VAT law violations can reach SAR 50,000.
Can I use my current invoicing software for Phase 2?
Yes, if it is updated to meet Phase 2 requirements. ZATCA confirms the Phase 1 solution can be used once updated.
Can I join Phase 2 before my wave?
Yes, voluntarily. Until your wave starts you must continue to follow Phase 1 rules.
What file formats are allowed in Phase 2?
XML or PDF/A-3 with embedded XML. A plain PDF is not enough.
Can one credit note cover several invoices?
Yes. List the original invoice numbers or give them as a range.
Are out-of-scope supplies e-invoiced?
No tax invoice is needed for supplies entirely out of scope of VAT. If the same system issues those documents, the counter and hash chain must have no gaps.
How can customers verify an e-invoice?
By scanning the QR code with ZATCA’s VAT app, which checks the QR content and shows the result.
