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E-Invoicing in Saudi Arabia

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.

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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 resident VAT-registered taxable persons and other parties issuing invoices on their behalf. Non-resident taxable persons are generally excluded.

It is being rolled out in two main phases:

  • Phase 1: Generation Phase (from 4 December 2021): Taxpayers must issue e-invoices in an electronic format, include the required fields and applicable 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). Standard documents must be cleared through Fatoora before they are issued to the buyer, while simplified documents are issued first and reported within 24 hours. E-invoices must be generated in XML based on UBL 2.1 and contain a universally unique identifier. The applicable cryptographic stamping process differs between clearance and reporting.

FAQs

Is e-invoicing mandatory for all businesses in Saudi Arabia?
B2B: Yes. Resident VAT-registered taxable persons must issue e-invoices for applicable B2B transactions.

B2G: Yes. E-invoicing applies to relevant supplies to government entities.

B2C: Yes. Simplified invoices must be issued to customers and reported to ZATCA within 24 hours.

Non-resident taxable persons are generally excluded from the Saudi e-invoicing mandate.
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 standard invoices and associated notes
- Reporting API for simplified invoices and associated notes
- Compliance and Production CSID issuance
- Validation and cryptographic stamping within the applicable clearance and reporting processes
Is there a phased implementation? What are the key deadlines?
Phase 1 (4 December 2021): Mandatory electronic invoice generation and storage, with the required invoice fields and applicable QR codes.

Phase 2 (from 1 January 2023, rolling out in waves based on taxpayer criteria): Integration with ZATCA for clearance of standard documents and reporting of simplified documents 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 the relevant Electronic Generation Solution (EGS) or solution unit via the ZATCA Fatoora portal
- Generate an OTP
- Create a key pair and Certificate Signing Request (CSR)
- Use the OTP and CSR to obtain a Compliance CSID
- Complete the required compliance checks
- Obtain a Production CSID and secret
- Use the production credentials for the applicable reporting and clearance API calls
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 generally not subject to ZATCA's Fatoora clearance and reporting process directly. Their invoices are not automatically converted into self-billed invoices by the Saudi buyer.

Self-billing may be used only where the relevant VAT conditions, agreement, and ZATCA approval requirements are satisfied. Where applicable, a self-billed standard tax invoice must:
- Use the required UBL format
- Be generated through the buyer's compliant e-invoicing solution
- Be cleared by ZATCA before it is issued
Does Saudi Arabia require real-time reporting of invoices?
Yes. Standard invoices (B2B/B2G) require real-time clearance before issuance. Simplified invoices (B2C) are issued first and must be reported to ZATCA within 24 hours; ZATCA validates/acknowledges them but does not return a cleared invoice.
Do non-resident companies need to comply with ZATCA?
No. Non-resident suppliers are generally not directly subject to the Saudi e-invoicing mandate. Saudi customers must retain the appropriate supplier and import documentation and account for any applicable import VAT or reverse-charge VAT. Self-billing is a separate arrangement subject to the applicable VAT conditions and ZATCA approval.
Is an electronic signature required?
Yes. In Phase 2:
- Simplified invoices and associated notes are cryptographically stamped by the taxpayer's EGS using its Production CSID
- Standard invoices and associated notes are validated and stamped by ZATCA during clearance
The applicable cryptographic stamping process therefore differs between reporting and clearance.
How should invoices be archived?
Invoices must be:
- Retained electronically for generally at least 6 years, subject to the applicable VAT record-retention rules and any longer period applying to specific records or circumstances
- Tamper-resistant and digitally accessible
- Preserved in their original structured format with the relevant UUID, signature or stamp, QR code, and hash-chain information
- Stored in accordance with applicable Saudi VAT, cloud-hosting, data-protection, and data-residency requirements
Where can I find official e-invoicing guidelines for Saudi Arabia?

Country Specs

Mandate StatusMandatory
Model TypeClearance, Real-time reporting (RTR)
Government EntityZakat, Tax and Customs Authority (ZATCA)
FormatsUBL 2.1, PDF/A-3 with embedded UBL
Infrastructure / PlatformFatoora Platform
E-signature RequiredYes. Simplified invoices and associated notes are cryptographically stamped by the taxpayer's EGS using its Production CSID. Standard invoices and associated notes are validated and stamped by ZATCA during clearance.
Key Deadlines4 Dec 2021: Phase 1 (mandatory electronic generation)

1 Jan 2023: Phase 2 (API integration begins)

2023 ongoing: Phased go-lives by taxpayer wave
AR MandatoryYes
AP MandatoryYes
Peppol AvailableNo
Domestic TransactionsB2G: Yes
B2B: Yes
B2C: Yes. Must be reported within 24h.
Cross-border TransactionsExports: Saudi supplier export invoices are generally treated as standard tax invoices and cleared through Fatoora where the supplier is subject to Phase 2.

Imports: Invoices received from non-resident suppliers are generally outside Fatoora issuance. Import VAT or reverse-charge requirements may apply. Self-billing is not automatic and requires a qualifying approved arrangement.
Archiving PeriodGenerally at least 6 years, subject to applicable VAT record-retention rules and longer periods for certain records or circumstances.
Archiving AbroadNo

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