The software vendor
Supplies the compliant solution, builds the technical connection to FATOORA and ships the updates ZATCA requires.
E-invoicing in Saudi Arabia: ZATCA's FATOORA for foreign-owned companies
E-invoicing has been mandatory in Saudi Arabia since 4 December 2021 for every resident business registered for VAT. The system, called FATOORA, is run by ZATCA (the Zakat, Tax and Customs Authority) in two phases: generate invoices with compliant software, then connect that software to ZATCA's platform, wave by wave. Here is who is in scope, the wave calendar, and what a foreign company setting up a Saudi subsidiary should plan for.
- E-invoicing mandatory since
- 4 December 20211
- Wave 25 integration deadline
- 1 February 20272
- Simplified (B2C) invoices reported to ZATCA
- Within 24 hours6
Information verified in October 2026 · Notes and sources
In brief
- FATOORA is the e-invoicing system of ZATCA, Saudi Arabia's tax authority; it applies to every VAT-registered business except non-resident taxpayers.
- Phase 1 (generation), in force since 4 December 2021, requires invoices to be issued and stored with a compliant electronic solution: handwritten, Word or Excel invoices are no longer allowed.
- Phase 2 (integration) has connected invoicing software to the FATOORA platform since 1 January 2023, in waves; ZATCA notifies each business at least six months before its integration date.
- Wave 25, announced on 24 July 2026, covers businesses whose VAT-able revenue exceeded SAR 187,500 in 2022, 2023, 2024 or 2025, with integration due by 1 February 2027.
- Under Phase 2, a B2B tax invoice must be cleared by ZATCA before it reaches the customer, and a B2C simplified invoice must be reported to ZATCA within 24 hours.
What is e-invoicing (FATOORA) in Saudi Arabia?
FATOORA (فاتورة, Arabic for 'invoice') is ZATCA's e-invoicing programme. An electronic invoice is one generated in a structured electronic format by compliant software. A scanned paper invoice or a photographed receipt does not count.
There are two document types. A tax invoice is usually issued between businesses (B2B). A simplified tax invoice is usually issued to consumers (B2C) and may not identify the buyer.
E-invoicing sits on top of Saudi VAT rules: the same mandatory fields, the same 15% rate. It adds technical requirements that tighten in Phase 2.
Phase 1 vs Phase 2: what each phase requires
Both phases are set by ZATCA's E-Invoicing Implementation Resolution. Phase 2 adds to Phase 1; it does not replace it.
Table 1
| Item | Phase 1: generation | Phase 2: integration |
|---|---|---|
| Since | 4 December 2021 | 1 January 2023, in waves |
| Who | Every VAT-registered business, except non-residents | Businesses in the wave ZATCA has notified |
| What to do | Issue and store invoices with a compliant solution; QR code on simplified invoices; buyer's VAT number on tax invoices | Connect the solution to FATOORA by API; send every invoice in XML |
| Tax invoice (B2B) | Issued electronically | Cleared by ZATCA before it is shared with the buyer |
| Simplified invoice (B2C) | Issued electronically, with QR code | Reported to ZATCA within 24 hours |
| Technical controls | No editing or deleting after issue | UUID, hash chain, tamper-proof counter, cryptographic stamp |
Foreign company: what your Saudi subsidiary must do, step by step
A foreign company with no establishment in Saudi Arabia is outside the scope of e-invoicing in Saudi Arabia. Its Saudi subsidiary is in scope as soon as it is VAT-registered.
- 1
Register for VAT at the right time
Registration is mandatory above SAR 375,000 of taxable sales over 12 months, and voluntary from SAR 187,500. From the effective date, invoices carry 15% VAT. See the VAT registration threshold.
- Qui
- You and your accountant
- Durée
- Depends on the threshold
- 2
Choose software that is already Phase 2-ready
Ask for compliant XML, UUID, QR code, invoice hash chaining and API connection to FATOORA. ZATCA publishes a non-binding, non-exhaustive list of solution providers.
- Qui
- You, with the vendor
- Durée
- Before the first invoice
- 3
Issue every invoice electronically from day one
Phase 1 applies immediately: no Word, Excel or handwritten invoices. An issued invoice cannot be edited or deleted; you correct it with a credit or debit note.
- Qui
- Your team
- Durée
- From VAT registration
- 4
Wait for your wave notification
Waves are based on past years. A company set up in 2026 is not in Wave 25, which looks at 2022 to 2025; a later wave will cover it.
- Qui
- ZATCA
- Durée
- At least 6 months' notice
- 5
Connect your software to FATOORA
Onboard each invoicing unit on the FATOORA portal (fatoora.zatca.gov.sa), obtain its cryptographic certificate, run the compliance checks, then send tax invoices for clearance and report simplified invoices within 24 hours.
- Qui
- The vendor, with your portal access
- Durée
- Before the notified date
- 6
Keep records and report outages
Keep invoices and data as required by Article 66 of the VAT Implementing Regulations. Notify ZATCA of any outage that stops you issuing or sharing invoices, and catch up as soon as it is fixed.
- Qui
- Your team
- Durée
- Ongoing
ZATCA Phase 2 waves: who must integrate, and by when?
ZATCA lowers the threshold with each wave. The test always looks at VAT-able revenue in past years, and every targeted business is notified at least six months ahead.
Table 2
| Wave | Criterion: revenue subject to VAT | Integrate by |
|---|---|---|
| Wave 1 | Over SAR 3 billion in 2021 | Started 1 January 2023 |
| Wave 21 | Over SAR 1.25 million (≈ $333,000) in 2022, 2023 or 2024 | 30 November 2025 |
| Wave 24 | Over SAR 375,000 (≈ $100,000) in 2022, 2023 or 2024 | 30 June 2026 |
| Wave 25 | Over SAR 187,500 (≈ $50,000) in 2022, 2023, 2024 or 2025 | 1 February 2027 |
Which transactions need e-invoicing in Saudi Arabia?
ZATCA's Implementation Resolution lists the transactions that must be e-invoiced and those that fall outside the scope.
Table 3
| In scope | Out of scope |
|---|---|
| Supplies of goods and services at 15% or zero rate | Fully VAT-exempt supplies |
| Exports of goods and services | Advance payments for exempt supplies |
| Intra-GCC supplies under the GCC VAT Agreement | Supplies under the reverse charge mechanism |
| Advance payments received before supply | Imports of goods |
Penalties: what a non-compliant invoice can cost
Who does what: your software vendor, your accountant and Tasis Partners
The accountant
Checks the VAT treatment of each invoice type, files returns and reconciles invoices with the books.
Tasis Partners
Coordinates the whole set-up from incorporation: VAT registration, software choice with your accountant, portal access and tracking of your wave. We are neither a software vendor nor an accounting firm.
Frequently asked questions
Is e-invoicing mandatory in Saudi Arabia?
Yes. E-invoicing in Saudi Arabia has been mandatory since 4 December 2021: every VAT-registered business in Saudi Arabia must issue electronic invoices, except non-resident taxpayers. Integration with the FATOORA platform (Phase 2) becomes mandatory on the date ZATCA notifies for each wave.
Who must implement ZATCA e-invoicing Phase 2?
Businesses targeted wave by wave, based on their VAT-able revenue in past years. Wave 25 covers those above SAR 187,500 in 2022, 2023, 2024 or 2025, who must integrate by 1 February 2027.
Who is exempt from e-invoicing in Saudi Arabia?
Non-resident taxpayers are outside the scope of e-invoicing in Saudi Arabia. Some transactions are also excluded: fully exempt supplies, reverse-charge supplies and imports of goods. A business that is not VAT-registered does not issue tax invoices.
Does a company set up in 2026 have to integrate with FATOORA straight away?
Not for Phase 2: Wave 25 is based on 2022 to 2025 revenue, and ZATCA gives at least six months' notice. Yes for Phase 1: once VAT-registered, the company must issue invoices with compliant software.
What is the minimum amount for an e-invoice?
There is none: under e-invoicing in Saudi Arabia, every taxable supply needs an electronic invoice, whatever the amount. Whether you issue a tax invoice or a simplified tax invoice depends on the customer and on Article 53 of the VAT Implementing Regulations.
Can I still send PDF invoices in Saudi Arabia?
An invoice typed in Word or Excel, or scanned, is not an electronic invoice. Under Phase 2 the invoice goes to ZATCA in XML, and the buyer receives it in XML or as a PDF/A-3 with the XML embedded, according to ZATCA's Detailed Guideline.
What are the mandatory requirements for e-invoicing?
A compliant solution that issues structured invoices with the required fields, a QR code on simplified invoices and no way to edit issued invoices. Phase 2 adds XML output, a UUID, hash chaining, a cryptographic stamp and API integration with FATOORA.
Notes and sources
- 1.ZATCA: e-invoicing roll-out phases
- 2.ZATCA: criteria for Wave 25 of the Integration Phase (24/07/2026)
- 3.ZATCA: criteria for Wave 24 of the Integration Phase
- 4.ZATCA: criteria for Wave 21 of the Integration Phase (28/02/2025)
- 5.ZATCA: E-Invoicing Implementation Resolution (scope, requirements, integration)
- 6.ZATCA: Detailed Guidelines for E-Invoicing, version 2 (clearance and 24-hour reporting)
- 7.ZATCA: Phase 1 e-invoicing violations and fines (2021)
Information verified in October 2026. Amounts and timelines are observed ranges provided for information only. Government fees are set by Saudi authorities and may change: we confirm them in writing before you commit to anything.
See also
Is your subsidiary invoicing by the book?
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