ZATCA E-Invoicing (Fatoorah) in Saudi Arabia: Complete Guide for Businesses (2026)

What Is Saudi Arabia's FATOORAH E-Invoicing System?

FATOORAH is Saudi Arabia's mandatory e-invoicing programme operated by the Zakat, Tax and Customs Authority (ZATCA). It requires every VAT-registered business in the Kingdom to generate, transmit, and store invoices electronically — with Phase 2 adding real-time API clearance and cryptographic stamping.

FATOORAH is Saudi Arabia's mandatory e-invoicing programme operated by the Zakat, Tax and Customs Authority (ZATCA). It requires every VAT-registered business in the Kingdom to generate, transmit, and store invoices electronically — with Phase 2 adding real-time API clearance and cryptographic stamping. Non-compliance carries fines of SAR 5,000 to SAR 50,000 per violation under the VAT Law.

When Did Saudi E-Invoicing Become Mandatory?

Phase 1 requires all VAT-registered businesses to:

Phase 1 requires all VAT-registered businesses to:

• Generate e-invoices using a compliant electronic invoicing solution (no handwritten or scanned invoices)
• Include a QR code on simplified invoices (B2C transactions)
• Store invoices electronically in a structured format
• Include all mandatory fields specified by ZATCA

Phase 1 was about getting businesses off paper. Any solution that generates structured invoices with the required fields satisfies Phase 1.

Phase 2: Integration (Rolling Out in Waves)

Phase 2 is the real transformation. It requires businesses to connect their invoicing systems directly to ZATCA's FATOORAH platform via API.

Phase 2 is the real transformation. It requires businesses to connect their invoicing systems directly to ZATCA's FATOORAH platform via API. Here's how it works:

1. Your invoicing system generates an invoice in XML format (UBL 2.1)
2. The invoice is submitted to ZATCA via API for validation and clearance
3. ZATCA validates the invoice — checking VAT calculations, tax IDs, format compliance
4. ZATCA applies a cryptographic stamp (digital signature) to the invoice
5. The stamped invoice is returned to you
6. Only the stamped invoice can be shared with your customer

Phase 2 Wave Timeline

ZATCA notifies businesses at least 6 months before their Phase 2 go-live date. Check the ZATCA portal for your specific wave.

Mandatory Fields on Saudi E-Invoices

Standard Invoice (B2B — Tax Invoice)

• Invoice type code (388 for standard, 381 for credit note, 383 for debit note)
• Invoice number (unique, sequential)
• Invoice issue date and time
• Seller's name, address, and VAT registration number
• Buyer's name, address, and VAT registration number
• Line items with description, quantity, unit price
• VAT category and rate per line item
• Total excluding VAT, VAT amount, total including VAT
• Currency code (SAR or foreign)
• Cryptographic stamp (Phase 2)
• QR code

Simplified Invoice (B2C)

Simplified invoices have fewer buyer requirements but must include:

• QR code (mandatory even in Phase 1)
• Seller details and VAT number
• Invoice date and time
• Total with VAT
• VAT amount

QR Code Requirements

Every Saudi e-invoice must contain a TLV-encoded QR code with:

Every Saudi e-invoice must contain a TLV-encoded QR code with:

1. Seller's name (Arabic)
2. Seller's VAT registration number
3. Invoice date and time (ISO 8601)
4. Invoice total (including VAT)
5. VAT amount
6. Cryptographic stamp hash (Phase 2)
7. ECDSA digital signature (Phase 2)
8. Public key (Phase 2)

Penalties for Non-Compliance

Penalties for Non-Compliance includes: Not issuing e-invoices: SAR 5,000–50,000 per violation Deleting or modifying e-invoices: SAR 10,000–50,000

• Not issuing e-invoices: SAR 5,000–50,000 per violation
• Deleting or modifying e-invoices: SAR 10,000–50,000
• Not including mandatory fields: Warning, then SAR 1,000+ per invoice
• Not storing e-invoices: SAR 5,000–50,000
• Obstructing ZATCA inspectors: SAR 5,000–50,000

ZATCA has been actively enforcing these penalties since 2023.

How to Comply: Step-by-Step

Check your Phase 2 wave — log into the ZATCA portal to see your notification Choose compliant invoicing software — it must generate XML (UBL 2.

1. Check your Phase 2 wave — log into the ZATCA portal to see your notification
2. Choose compliant invoicing software — it must generate XML (UBL 2.1) invoices with all mandatory fields
3. Ensure QR code generation — every invoice needs a TLV-encoded QR code
4. Set up API integration (Phase 2) — your software must connect to ZATCA's API for invoice clearance
5. Test in ZATCA's sandbox — use the simulation environment before going live
6. Train your team — ensure everyone issuing invoices understands the new process

Saudi Arabia vs Other E-Invoicing Systems

Saudi Arabia vs Other E-Invoicing Systems includes: Saudi (ZATCA) — XML + QR + cryptographic stamp + API clearance India (IRP) — JSON + QR + IRN + API validation

• Saudi (ZATCA) — XML + QR + cryptographic stamp + API clearance
• India (IRP) — JSON + QR + IRN + API validation
• Italy (SDI) — XML + digital signature + exchange system
• Nigeria (FIRS) — FIRS TaxPro-Max integration

Saudi Arabia's system is among the most technically demanding, requiring cryptographic stamps and near-real-time API clearing.

Next Steps

If you're a business operating in Saudi Arabia, start preparing now. Invoicemonk supports SAR invoicing with VAT at 15%, all mandatory fields, and professional formatting. Create a compliant Saudi invoice →