This article explains the difference between Phase 1 and Phase 2 of E-Invoicing in Saudi Arabia, their implementation dates, and the requirements of each phase.
Phase 1 — Generation phase
- Mandatory from: 4 December 2021 for every VAT-registered taxpayer.
- Requirement: issue invoices through an electronic system (no paper invoices, no PDF from Word).
- Format: a structured digital format (XML or PDF/A-3 with embedded XML).
- Mandatory fields: seller name, tax number, timestamp, invoice line items, tax amount, total, and a QR code for B2C invoices.
- Connection with ZATCA (Zakat, Tax and Customs Authority): no direct connection in this phase. Invoices are stored on the seller’s system.
Phase 2 — Integration phase
- Started on: 1 January 2023, in waves based on the organization’s revenue.
- Requirement: send every invoice to the ZATCA Fatoora platform in real time (B2B) or within 24 hours (B2C).
- Additional fields:
- Electronic signature (Cryptographic Stamp) using a PKI certificate from ZATCA.
- UUID (a unique identifier for the invoice).
- Hash of the previous invoice (data integrity chain).
- QR code containing the invoice data and signature.
Invoice types in Phase 2
- Standard Tax Invoice (B2B): must be cleared by ZATCA before being sent to the buyer (real-time Clearance).
- Simplified Tax Invoice (B2C): issued and delivered to the buyer immediately, then reported to ZATCA within 24 hours.
Qoyod’s role in both phases
Qoyod is compliant with Phase 2 of E-Invoicing. It automatically handles:
- Signing and stamping the invoice.
- Generating the UUID, Hash, and QR.
- Sending B2B invoices for clearance, and B2C invoices for reporting within 24 hours.
- Managing the PKI (CCSI) certificate automatically.
