E-invoicing and ZATCA
E-invoicing Phase 2 (integration phase)
E-invoicing Phase 2, the integration phase, started on 1 January 2023 and reaches taxpayers in waves that ZATCA selects and announces. The taxpayer's invoicing system connects to the Fatoora platform, so invoices are cleared or reported with ZATCA electronically.
What it means
Phase 1 asks you to create invoices properly. Phase 2 asks your system to talk to ZATCA through the Fatoora platform. What happens next depends on the invoice: a standard tax invoice is cleared before it reaches the buyer, while a simplified tax invoice is issued at once and reported within 24 hours.
A Phase 2 invoice carries more than a QR code. It holds the invoice data as XML in the UBL 2.1 format, a cryptographic stamp, a UUID, an invoice counter value, and the hash of the previous invoice, which chains invoices together. A PDF/A-3 file can carry the XML, so people still get a readable copy.
Your date is set by ZATCA, not by you. A wholesaler invoicing shops feels the change most, because each invoice waits for ZATCA to accept it. A cafe's day looks much like Phase 1: the customer gets the invoice at once and the report follows within 24 hours. Follow ZATCA's announcements to learn your own wave. It is wise to find out early which of the two invoice types you issue more often, so you know where the heavier load will fall on you.
In practice
- Learn your wave and its date from ZATCA's announcements and notices.
- Ask your software provider whether it supports Phase 2 integration, not only the QR code.
- Rehearse in ZATCA's simulation environment before your first live invoice.
- Decide who watches for invoices that ZATCA rejects or that failed to send.
Questions about E-invoicing Phase 2 (integration phase)
How do I know when my business must join Phase 2?
ZATCA selects taxpayers in waves and announces them, so your date depends on the wave your business is placed in. Follow the announcements and notices that concern your own business rather than copying the timeline of a friend or a similar business. As soon as you know your wave, start preparing the connection and try it out in the simulation environment.
Do all my invoices go through clearance in Phase 2?
No. Standard tax invoices, issued to businesses and government entities, are cleared: sent to ZATCA first and issued to the buyer only after ZATCA accepts them. Simplified invoices for consumers are issued at once and reported within 24 hours. Credit notes and debit notes are e-invoices too.
Issue correct invoices without the guesswork
Try Fatooraz free for 90 days in ZATCA’s simulation environment. No credit card needed.