Documentation Index
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Invoicing compliance in Saudi Arabia
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Phase 2 — Integration phase begins
Phase 2 introduces a continuous transaction control model and is rolled out in turnover-based waves. All in-scope taxpayers must integrate their e-invoicing solutions with ZATCA’s Fatoora platform and produce UBL 2.1 invoices aligned with EN 16931, signed with a ZATCA-issued Cryptographic Stamp Identifier (CSID) using a XAdES digital signature, with a UUID, hash chain and TLV-encoded base64 QR code. Two flows apply:
Wave 1 covered taxpayers with turnover above SAR 3 billion in 2021. Subsequent waves have progressively lowered the threshold, with ZATCA notifying each wave at least six months before its integration deadline.
Phase 2 introduces a continuous transaction control model and is rolled out in turnover-based waves. All in-scope taxpayers must integrate their e-invoicing solutions with ZATCA’s Fatoora platform and produce UBL 2.1 invoices aligned with EN 16931, signed with a ZATCA-issued Cryptographic Stamp Identifier (CSID) using a XAdES digital signature, with a UUID, hash chain and TLV-encoded base64 QR code. Two flows apply:
| Flow | Applies to | Mechanism |
|---|---|---|
| Clearance | B2B and B2G standard tax invoices | The invoice is submitted to Fatoora and cryptographically stamped by ZATCA before being issued to the buyer. Without clearance, the invoice is not valid. |
| Reporting | B2C simplified tax invoices | The invoice is issued to the customer at point of sale with its QR code and reported to Fatoora within 24 hours. |
Wave 24 — SME threshold
Taxpayers with VAT-taxable turnover exceeding SAR 375,000 in 2022, 2023 or 2024 must integrate their e-invoicing systems with the Fatoora platform by 30 June 2026. This is the first wave to drop the threshold below SAR 750,000 and brings a large share of the Saudi SME population into Phase 2. Further waves are expected to be announced as ZATCA progressively extends the mandate to smaller taxpayers.
Taxpayers with VAT-taxable turnover exceeding SAR 375,000 in 2022, 2023 or 2024 must integrate their e-invoicing systems with the Fatoora platform by 30 June 2026. This is the first wave to drop the threshold below SAR 750,000 and brings a large share of the Saudi SME population into Phase 2. Further waves are expected to be announced as ZATCA progressively extends the mandate to smaller taxpayers.