ZATCA Phase 2 (Integration / Fatoorah)

The integration phase requires connecting your invoicing systems directly to the Saudi tax authority's platform.

Definition

ZATCA (Zakat, Tax and Customs Authority) is Saudi Arabia's tax authority. Its e-invoicing programme, known as Fatoorah, rolls out in two main phases.

Phase 2 (Integration) is the integration stage: invoices must be generated in a structured XML format (or PDF/A-3 with embedded XML), electronically signed, carry a QR code and be exchanged through a direct connection to the ZATCA platform.

How it works

Phase 2 splits into two flows depending on the transaction:

• Clearance for B2B and B2G invoices: the invoice is sent to ZATCA, which applies its own stamp and a validated QR code before the document reaches the buyer.
• Reporting for simplified B2C invoices: the invoice is issued and then reported to ZATCA within a short window (on the order of a few hours).

Every invoice embeds a cryptographic stamp and a unique identifier (UUID) ensuring its integrity.

Good to know

Phase 2 is deployed in waves: taxpayers are onboarded in groups based on turnover, with each wave given an effective date notified in advance.

The preceding Phase 1 (Generation) already required structured, tamper-proof e-invoices, but without a direct link to the platform. Phase 2 adds that mandatory technical connection.