What is ZATCA e-invoicing (Fatoorah)?
Fatoorah is Saudi Arabia's national electronic invoicing programme, run by ZATCA. It replaces handwritten and free-form PDF invoices with a structured electronic invoice that follows a fixed format, so every VAT-registered business issues and stores invoices the same way.
It applies to all taxable persons resident in the Kingdom (and to third parties issuing invoices on their behalf). Non-resident businesses are outside its scope.
The two phases
Phase 1 — Generation
Live since 4 December 2021. Businesses must generate and store invoices electronically using a compliant system. Paper and simple PDF/Word invoices are no longer acceptable. Simplified (B2C) invoices must carry a QR code.
Phase 2 — Integration
Rolling out in waves since 1 January 2023. In addition to Phase 1, your invoicing system must integrate with ZATCA's platform (Fatoora) to clear or report invoices in real time, in the required XML / PDF-A3-with-embedded-XML format, with cryptographic stamps. ZATCA notifies each business of its wave and go-live date in advance.
Two invoice types
- Standard tax invoice (B2B / B2G): used between businesses. Under Phase 2 it is cleared by ZATCA before you share it with the buyer.
- Simplified tax invoice (B2C): used for retail sales to consumers. It carries a QR code and, under Phase 2, is reported to ZATCA within 24 hours.
What a compliant tax invoice must contain
- Seller name, address and VAT registration number
- Invoice issue date (and supply date where different)
- A unique sequential invoice number
- Buyer details and VAT number for standard (B2B) invoices
- Line items with description, quantity and unit price
- Taxable amount, the VAT rate (standard 15%) and VAT amount
- Total amount payable including VAT
- A QR code (mandatory on simplified invoices)
The VAT rate
The standard VAT rate in Saudi Arabia is 15% (raised from 5% in July 2020). Some supplies are zero-rated or exempt — check the current ZATCA guidance for your sector.
Invoicing on the go
Field sales, distribution and mobile POS teams still need to issue a compliant, QR-coded invoice at the point of sale — often with no reliable connection. Invoice Max Pro is built offline-first: your reps build the cart and issue the receipt on the spot, and the app syncs when a connection returns, so nothing is lost and every document keeps its sequential number.
Frequently asked questions
Is e-invoicing mandatory for small businesses?
Yes. Phase 1 applies to all VAT-registered businesses regardless of size. Phase 2 integration is phased in by turnover, so smaller businesses are onboarded in later waves — but everyone must already meet Phase 1.
Do I need a QR code on every invoice?
A QR code is mandatory on simplified (B2C) invoices. Standard (B2B) invoices require it under Phase 2.
What happens if I keep using paper invoices?
Non-compliance can lead to penalties from ZATCA. Moving to a compliant electronic system is the only route.
This guide is general information, not tax or legal advice. Always confirm the current requirements and your integration wave on the official ZATCA (zatca.gov.sa) website.