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
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.
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 |
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