What is ZATCA E-Invoicing?
ZATCA e-invoicing, branded Fatoora, is the mandatory electronic invoicing system introduced by the Zakat, Tax and Customs Authority in Saudi Arabia. It requires every VAT-registered business to issue tax invoices, credit notes, and debit notes in structured XML format. Phase 1 (Generation) launched in December 2021, and Phase 2 (Integration) rolled out from 2023 in revenue-banded waves.
How It Works
- Phase 1: Generate structured electronic invoices using a compliant e-invoicing solution with QR codes.
- Phase 2: Integrate the e-invoicing system with the Fatoora platform via APIs.
- B2B tax invoices are cleared in real time before being shared with the buyer.
- B2C simplified invoices are reported within 24 hours.
- Cryptographic stamps, UUIDs, and sequential hashes are required to prevent tampering.
Saudi Context
ZATCA enforces e-invoicing through penalties (SAR 5,000-50,000 per violation), wave-based onboarding (largest taxpayers first), and ongoing audit. Qoyod is a ZATCA-compliant e-invoicing solution for both Phase 1 and Phase 2, used by thousands of Saudi SMEs and enterprises across retail, services, healthcare, and contracting.
Example
A Saudi retailer issues a sale to a corporate customer. Qoyod generates the XML invoice, signs it cryptographically, sends it to the Fatoora platform for clearance, receives an approval and a unique UUID, then delivers the cleared PDF-A3 invoice with embedded XML to the customer, all within seconds.