What is Electronic Invoice (FATOORA)?
An electronic invoice is a structured digital tax invoice issued and stored in a standardized electronic format (XML or PDF/A-3 with embedded XML), required by ZATCA for all VAT-registered Saudi businesses under the FATOORA e-invoicing regulation.
How It Works
- Phase 1 (Generation, from Dec 2021): structured e-invoices with QR code, UUID, and invoice hash.
- Phase 2 (Integration, from Jan 2023, phased by group): real-time integration with the ZATCA FATOORA platform.
- B2B (standard) invoices require clearance before delivery to buyer.
- B2C (simplified) invoices reported within 24 hours of issuance.
Saudi Context
ZATCA’s FATOORA is one of the most comprehensive e-invoicing regimes globally, with mandatory cryptographic stamping, UUID generation, and real-time XML transmission. Saudi taxpayers must use ZATCA-compliant software (such as Qoyod) and connect via OAuth-secured APIs. Non-compliance triggers fines up to SAR 50,000 per violation.
Example
A Saudi retailer issues a B2C e-invoice for SAR 230 (SAR 200 + 15% VAT). The Qoyod system generates XML with UUID, applies cryptographic stamp, prints with QR code, and transmits to FATOORA within 24 hours for ZATCA reporting.