E-Invoicing in Saudi Arabia

Q: Is e-invoicing mandatory for all businesses in Saudi Arabia?

B2B: Yes. All VAT-registered businesses must issue e-invoices for B2B transactions. B2G: Yes. E-invoicing is mandatory for sales to government entities. B2C: Yes. Must issue Simplified Invoices, which must be reported to ZATCA within 24 hours.

Q: Is there a phased implementation? What are the key deadlines?

Phase 1 (4 December 2021): E-invoice generation (must issue XML/PDF hybrid invoices). Phase 2 (From 1 January 2023 (rolling waves based on taxpayer size): E-invoice integration with ZATCA (clearance/reporting via API).

Saudi Arabia mandates structured electronic invoicing for all VAT-registered businesses, supporting end-to-end digital compliance and enhancing tax transparency across B2B, B2G, and B2C transactions.

Country Situation

General Description

Saudi Arabia has implemented a comprehensive, phased e-invoicing mandate under the oversight of the Zakat Tax and Customs Authority (ZATCA). Introduced in December 2021, the system aims to standardize invoicing, combat VAT fraud, and support broader digital transformation goals in the Kingdom. The mandate applies to all VAT-registered businesses, covering B2B, B2G, and B2C transactions. It is being rolled out in two main phases:

Phase 1: Generation Phase (from 4 December 2021): Taxpayers must issue e-invoices in a structured electronic format, include required fields and QR codes, and store them digitally. This phase does not involve integration with ZATCA.
Phase 2: Integration Phase (rolled out in waves since January 2023): Taxpayers are required to integrate their invoicing systems with ZATCA's platform (Fatoora). Invoices must be validated and cryptographically signed through the platform in near real-time. E-invoices must be generated using XML format based on UBL 2.1 structure and must contain a universally unique identifier and cryptographic stamp during Phase 2.

FAQs

Is e-invoicing mandatory for all businesses in Saudi Arabia?

B2B: Yes. All VAT-registered businesses must issue e-invoices for B2B transactions.

B2G: Yes. E-invoicing is mandatory for sales to government entities.

B2C: Yes. Must issue Simplified Invoices, which must be reported to ZATCA within 24 hours.

Who is the governing entity overseeing e-invoicing in Saudi Arabia?

The Zakat, Tax and Customs Authority (ZATCA) governs e-invoicing through the Fatoora platform.
ZATCA manages:
- Clearance API (for B2B/B2G transactions)
- Reporting API (for B2C transactions)
- Cryptographic Certificate (CSID) issuance and signing

Is there a phased implementation? What are the key deadlines?

Phase 1 (4 December 2021): E-invoice generation (must issue XML/PDF hybrid invoices).

Phase 2 (From 1 January 2023 (rolling waves based on taxpayer size): E-invoice integration with ZATCA (clearance/reporting via API).

Is there a national e-invoicing platform in Saudi Arabia?

Yes. Saudi Arabia uses Fatoora, operated by ZATCA, for:
- Invoice clearance (real-time) for B2B/B2G
- Invoice reporting (within 24h) for B2C
- QR code verification, signature validation, and audit traceability

Do businesses need to register for e-invoicing compliance in Saudi Arabia?

Yes,. Businesses must:
- Register their Electronic Generation Solution (EGS) via the ZATCA Fatoora portal.
- Generate an OTP, then provide it to ecosio to:
- Request a Cryptographic Stamp Identifier (CSID)
- Activate signing and submission via APIs

Is Peppol required or available for Saudi Arabia?

No. Peppol is not used or supported under the Saudi framework. All integrations must go through ZATCA’s APIs.

What are the approved e-invoicing formats in Saudi Arabia?

All e-invoices must be generated in a structured XML format, specifically aligned with the UBL 2.1 schema. For human readability, suppliers may also generate a PDF/A-3 version that contains the XML as an embedded attachment (commonly referred to as a hybrid invoice).

What is the process for foreign suppliers or self-billing in Saudi Arabia?

Foreign suppliers are not subject to ZATCA directly, however if they do not issue ZATCA-compliant invoices, the Saudi buyer must self-bill.

Self-billed invoices:
- Must use UBL format
- Must be signed by the buyer’s CSID
- Must be cleared or reported depending on the invoice type

Does Saudi Arabia require real-time reporting of invoices?

Yes. Standard invoices (B2B/B2G) require real time clearance. Simplified invoices (B2C) must be reported within 24 hours. Real-time clearance required. No invoice is considered legally valid until cleared or reported.

Do non-resident companies need to comply with ZATCA?

No. Non-resident foreign suppliers are not directly subject to ZATCA. However, buyers in Saudi Arabia must issue self-billed invoices in these cases to ensure compliance.

Is an electronic signature required?

Yes. In phase 2, all invoices must be signed using:
- A cryptographic stamp Identifier (CSID) issued by ZATCA
- A XAdES-based digital signature
The stamp secret to authenticate each signed invoice

How should invoices be archived?

Invoices must be:
- Stored for 6 years
- Tamper-proof and digitally accessible
- Available in UBL 2.1 XML or PDF/A-3 with embedded XML
- Preserved with full audit trail (UUID, signature, QR, timestamp)

Where can I find official e-invoicing guidelines for Saudi Arabia?

You can access all the latest ZATCA e-invoicing documentation at the following links:
ZATCA E-Invoicing Portal (Fatoora)
E-Invoicing Regulation (2020)
Implementation Resolution (2021)
XML Implementation Standard (2023)
Security Features Standard
QR Code Creation Guide
Fatoora SDK & Sandbox

Country Specs

Mandate Status	Mandatory, Staggered Rollout
Mandate Scope	B2B, B2G, B2C
Model Type	Clearance
Government Entity	Zakat, Tax and Customs Authority (ZATCA)
Formats	UBL 2.1, PDF/A-3 with embedded UBL
Infrastructure / Platform	Fatoora Platform
E-signature Required	Yes. All invoices must be signed with a CSID using XAdES.
Key Deadlines	4 Dec 2021: Phase 1 (mandatory electronic generation) 1 Jan 2023: Phase 2 (API integration begins) 2023 ongoing: Phased go-lives by taxpayer wave
AR Mandatory	Yes
AP Mandatory	Yes
Peppol Available	No
Domestic Transactions	B2G: Yes B2B: Yes B2C: Yes. Must be reported within 24h.
Cross-border Transactions	Exports: Yes . Must be cleared via API. Imports: Yes. Supported via self-billing.
Archiving Period	Minimum 6 years from invoice clearance/reporting date
Archiving Abroad	No

Contact an expert

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