E-invoicing and ZATCA
ZATCA
ZATCA is the Zakat, Tax and Customs Authority, known for short as the Authority, and is the Saudi government body behind VAT and e-invoicing. It runs the Fatoora platform, announces the waves of businesses that must connect under Phase 2, and receives the VAT returns that taxpayers file on its portal.
What it means
For a business owner, ZATCA is the authority that VAT affairs run through. Your VAT registration number identifies you to it, your VAT return is filed on its portal, and its notices tell you when your business must take the next e-invoicing step. Reading those notices is part of running the business, much like reading mail from your bank.
Take a wholesaler that bills shops every week. The owner checks ZATCA's announcements to learn which Phase 2 wave the company belongs to, asks the accountant to file the return on the portal on time, and gets the invoicing software ready before the wave date. All three jobs lead back to the same authority, so the owner keeps them on one schedule and reviews it every month.
Fatooraz helps you meet ZATCA's e-invoicing requirements, but dealing with the Authority stays with you. You onboard with ZATCA yourself, and VAT returns are still filed by you on its portal. Treat the software as your tool for issuing correct invoices, and ZATCA as the party that receives them. If a question comes up about a date or a procedure, your reference is ZATCA's announcements and official channels, not the software alone.
In practice
- Read ZATCA's e-invoicing announcements to find out your business's Phase 2 wave and its date.
- Make sure at least one trusted person can sign in to ZATCA's portal.
- Confirm any new rule on ZATCA's official channels, not from forwarded messages.
- File each VAT return on the portal by the end of the month after the tax period.
Questions about ZATCA
Is ZATCA the same as Fatoora?
No. ZATCA is the government authority, and Fatoora is its e-invoicing platform and portal. You deal with ZATCA as a taxpayer in general, and you deal with Fatoora when you connect your invoicing system under Phase 2. Keeping the two apart saves you confusion when you read a notice or look for official guidance.
Does ZATCA file my VAT return for me?
No. The taxpayer files the VAT return on ZATCA's own portal, and ZATCA receives it. Fatooraz gives you VAT reports to work from, but it does not file the return for you, so you or your accountant still enter it on the portal.
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