e-Invoicing in Saudi Arabia (FATOORAH)

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Characteristics of the electronic invoice in Saudi Arabia

Saudi Arabia is amid the implementation of the new electronic invoicing project called the FATOORAH. The norm will affect resident taxpayers in the country and will apply to B2B, B2G and B2C transactions.

The Saudi Zakat, Tax and Customs Authority (ZATCA) established two phases for the implementation of the electronic invoice. Phase 2, the integration phase, is gradually implemented:

  1. As of January 1, 2023, taxpayers that are obliged to connect to ZATCA are those with revenues subject to VAT surpassing SAR 3 billion SAR.
  2. As of July 1, 2023, taxpayers that are obliged to connect to ZATCA are those with revenues subject to VAT surpassing SAR 500 million Saudi Rials.
  3. As of October 1, 2023, taxpayers that are obliged to connect to ZATCA are those with revenues subject to VAT surpassing SAR 250 million Saudi Rials.
  4. As of November 1, 2023, taxpayers that are obliged to connect to ZATCA are those with revenues subject to VAT surpassing SAR 150 million Saudi Rials.
  5. As of December 1, 2023, taxpayers that are obliged to connect to ZATCA are those with revenues subject to VAT surpassing SAR 100 million Saudi Rials.
  6. As of January 1st, 2024, taxpayers obliged to integrate their e-Invoicing systems with the FATOORAH platform are those with VATable income exceeding 70 million Saudi Rials.
The EDICOM electronic invoicing solution is ready for phase II, the integration phase, with the ZATCA system.
Tax Authority

Tax Authority

Zakat Tax and Customs Authority (ZATCA).

Obligation

Obligation

The staged mandatory implementation started on January 2023, with the largest taxpayers. 

Invoice Format

Invoice Format

Phase 1: Companies will be able to issue electronic invoices without a specific format. 
Phase 2: UBL- XML o PDF with embedded XML. 

Digital Signature

Digital Signature

Phase 1: Not mandatory.
Phase 2: Only Madatory for B2C e-invoices.

Fiscal Control

Fiscal Control

Phase 1: No tax authority controls.
Phase 2: A Universally Unique Identifier (UUID) generated and signed by the ZATCA portal must be included. 

Print Format

Print Format

Phase 1: The B2C electronic invoices must include a QR code and is voluntary for B2B e-invoice. 
Phase 2: Printed B2B electronic invoices must include a QR code that final recipients will be able to use to verify the authenticity of invoices. 

Archiving

Archiving

Invoices must be archived electronically with their associated data for 6 years. 

Do you need to know more about e-Invoicing in Saudi Arabia (FATOORAH)?

Contact one of our e-invoicing specialists.

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Frequently asked questions about FATOORAH

Phase 1 began in December 4th, 2021 and taxpayers had to to issue electronic invoices with a compatible system that allows the required fields to be represented in the electronic invoice. The system must also archive and generate an electronic copy for the client. Manual invoices will no longer be accepted.

Phase 2 is the integration phase with ZATCA. This phase will be carried out gradually. ZATCA will inform at least six months in advance of the integration date.

During this phase, the following requirements must be followed: all electronic invoices including tax invoices or simplified tax invoices, and their associated documents must be generated in an XML or PDF/ A-3 (with XML) format.

The electronic invoicing solution must be able to connect to the internet and integrate with external systems through the ZATCA’s API.

Yes, FATOORAH is applicable to B2B, B2C, and B2G transactions. Exemptions to the mandate include: exempt supplies, advanced payments related to exempt supplies, reverse charge supplies, and import of goods. Companies that do not reside in Saudi Arabia are exempted.

No, the current mandate does not specify regulation to process inbound invoices.

Related resources

Implementation of e-Invoicing around the world

The technical and legal requirements for e-Invoicing are different in each country. If you want to know the details and tax obligations of any particular country, just click on the map or choose a country from the dropdown list.

AlbaniaAngolaArgentinaAustraliaAustriaBahrainBelgiumBeninBoliviaBrazilBurundiCanadaCape VerdeChadChileChinaColombiaCosta RicaCôte d'Ivoire CroatiaCyprus Democratic Republic of CongoDenmarkDominican RepublicEcuadorEgyptEl SalvadorEstoniaFinlandFranceGermanyGhanaGreeceGuatemalaHungaryIndiaIndonesiaIrelandIsraelItalyJapanJordanKazakhstanKenyaLatviaLesothoLithuaniaLuxembourgMalaysiaMexicoThe NetherlandsNew ZealandNigerNigeriaNorwayPanamaParaguayPeruThe PhilippinesPolandPortugalRomaniaRussiaRwandaSaudi ArabiaSenegalSerbiaSingapore SlovakiaSloveniaSouth AfricaSouth KoreaSpainSwedenSwitzerlandTaiwanTanzaniaThailandTogoTunisiaTurkeyUgandaUnited Arab EmiratesUnited KingdomUnited StatesUruguayVietnamZambiaZimbabwe

Related news about e-invoices in Saudi Arabia

Saudi Arabia Makes Electronic Invoicing Mandatory: FATOORAH Project

The EDICOM e-Invoicing solution for the Kingdom of Saudi Arabia is ready for the integration phase with the ZATCA system
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