ZATCA FATOORA in Saudi Arabia is the Kingdom’s electronic invoicing framework for taxpayers subject to the E-Invoicing Regulation. It requires businesses to generate compliant electronic invoices and, once selected for Phase 2, integrate their invoicing systems with ZATCA’s FATOORA Platform.
Last updated: October 2026.
Phase 1 has applied since December 4, 2021. Phase 2, known as the Integration Phase, began on January 1, 2023 and is being implemented gradually through taxpayer waves.
As of October 2026, ZATCA’s latest published selection is Wave 25. It covers taxpayers whose revenues subject to VAT exceeded SAR 187,500 during 2022, 2023, 2024, or 2025. Targeted taxpayers in this wave must integrate their e-invoicing solutions with FATOORA by no later than February 1, 2027.
This guide explains who must comply, how Phase 2 works, the difference between clearance and reporting, CSID onboarding, invoice formats, compliant invoicing solutions, and the steps businesses should take before their integration deadline.
If you need the broader company establishment and tax-registration process, see our Business Setup in Saudi Arabia: 2026 Guide.
ZATCA FATOORA Saudi Arabia: Quick Answer
FATOORA is implemented in two phases:
- Phase 1 – Generation Phase: taxpayers subject to the E-Invoicing Regulation must generate and store compliant electronic invoices and electronic notes through an electronic invoicing solution.
- Phase 2 – Integration Phase: targeted taxpayers must integrate their invoicing solution with ZATCA’s FATOORA Platform and comply with additional technical, security, invoice-format, clearance, and reporting requirements.
Phase 2 does not apply to every taxpayer on the same date. ZATCA selects taxpayers in waves and notifies each targeted taxpayer at least six months before its required integration date.
Who Must Comply With FATOORA?
Phase 1 applies to persons subject to VAT in Saudi Arabia who fall within the E-Invoicing Regulation, excluding non-resident taxable persons, as well as other parties issuing tax invoices on behalf of taxable suppliers where applicable.
For Phase 2, a taxpayer becomes subject to the Integration Phase according to the wave and integration date communicated by ZATCA.
Latest Phase 2 Wave: Wave 25
ZATCA announced Wave 25 on July 24, 2026.
The wave includes taxpayers whose revenues subject to VAT exceeded SAR 187,500 during any of the following years:
- 2022
- 2023
- 2024
- 2025
The targeted taxpayers must complete integration with the FATOORA Platform by no later than February 1, 2027.
A business should not rely only on general revenue thresholds to determine its deadline. The taxpayer should also monitor the formal notification received from ZATCA confirming the applicable integration wave and date.
Phase 1 vs Phase 2 of ZATCA E-Invoicing
| Requirement | Phase 1 | Phase 2 |
|---|---|---|
| Electronic invoice generation | Required | Required |
| Electronic invoice storage | Required | Required |
| Integration with FATOORA Platform | Not required | Required for targeted taxpayers |
| Structured XML requirements | Phase 1 requirements | Full Phase 2 technical requirements |
| Clearance of standard tax invoices | Not applicable | Required |
| Reporting simplified tax invoices | Not applicable | Within 24 hours |
| CSID onboarding | Not applicable | Required for applicable EGS units |
Which Invoice Types Does FATOORA Cover?
Saudi VAT rules generally distinguish between two main electronic invoice types.
Standard Tax Invoice
A standard tax invoice is typically issued in business-to-business and business-to-government transactions.
For a taxpayer that has entered Phase 2, the standard tax invoice follows the clearance model.
The invoice is submitted electronically to ZATCA before it is shared with the customer. ZATCA validates the invoice and returns the cleared document through the integration process.
Simplified Tax Invoice
A simplified tax invoice is typically used for business-to-consumer transactions and other transactions where the simplified-invoice rules apply.
During Phase 2, simplified invoices follow the reporting model.
The taxpayer’s compliant invoicing system generates the invoice and the required cryptographic stamp, and the invoice must then be reported to ZATCA within 24 hours of issuance.
Clearance vs Reporting
| Invoice | Phase 2 Process |
|---|---|
| Standard Tax Invoice | Real-time clearance before sharing the cleared invoice with the customer |
| Simplified Tax Invoice | Reporting to ZATCA within 24 hours of issuance |
This distinction is one of the most important parts of Phase 2 implementation.
A business should configure its ERP, accounting software, POS, or other invoicing solution according to the correct transaction type rather than treating every invoice in the same way.
FATOORA Invoice Format Requirements
Once a taxpayer enters the Integration Phase, electronic invoices and associated notes must be generated in the structured format required by ZATCA.
The Phase 2 framework supports:
- XML
- PDF/A-3 with embedded XML
The invoice must also satisfy the applicable ZATCA business rules, technical specifications, and required data fields.
The human-readable version does not replace the structured electronic invoice required by the Integration Phase.
QR Codes and Cryptographic Stamping
Phase 2 introduces additional security and invoice-integrity requirements.
Depending on the invoice type and integration process, these requirements include:
- Required QR-code information.
- Cryptographic stamping.
- Invoice hashes.
- Invoice counters.
- UUID requirements.
- CSID-based identification.
- Anti-tampering controls.
For simplified invoices, the cryptographic stamp is generated by the taxpayer’s compliant Electronic Generation Solution rather than being added by the FATOORA Platform.
What Is a CSID?
CSID means Cryptographic Stamp Identifier.
It is part of the Phase 2 onboarding process used to identify and authenticate an Electronic Generation Solution unit when communicating with ZATCA’s systems.
A business with multiple invoicing devices, branches, POS units, or invoicing environments may therefore need to plan how its EGS units will be onboarded and managed.
How FATOORA Onboarding Works
A typical Phase 2 onboarding project can include the following steps:
- Confirm the taxpayer’s ZATCA integration wave and deadline.
- Review the current ERP, accounting, POS, or invoicing environment.
- Confirm which systems and EGS units issue invoices.
- Prepare invoice master data and tax configuration.
- Implement the required XML structure and business rules.
- Configure QR and security requirements.
- Generate the required onboarding information and CSR.
- Use the FATOORA onboarding process to obtain the applicable CSID.
- Test invoice generation and validation.
- Test standard invoice clearance.
- Test simplified invoice reporting.
- Complete production onboarding before the mandatory integration date.
Do You Need a ZATCA-Listed Solution Provider?
No. A taxpayer is not required to purchase its invoicing system exclusively from a provider appearing in ZATCA’s Solution Providers Directory.
ZATCA publishes an indicative directory of providers that have passed its qualification process.
However, the taxpayer can use another provider, an internal system, or another technical solution as long as the implemented solution complies with the applicable FATOORA requirements.
The taxpayer remains responsible for its own compliance.
What Should a Compliant Invoicing Solution Be Able to Do?
A Phase 2 solution should be able to support the requirements applicable to the taxpayer, including:
- Generate compliant structured invoices.
- Generate the required XML.
- Support PDF/A-3 with embedded XML where used.
- Apply the required invoice business rules.
- Generate the appropriate QR information.
- Support cryptographic security requirements.
- Manage applicable CSIDs.
- Submit standard invoices for clearance.
- Report simplified invoices within 24 hours.
- Process ZATCA API responses.
- Store invoices and related records correctly.
- Maintain appropriate audit trails and invoice integrity.
FATOORA and Input VAT Deduction
The E-Invoicing Implementation Resolution links compliant electronic invoices to the exercise of the input-tax deduction right for transactions subject to the E-Invoicing Regulation.
For taxpayers subject to the Integration Phase, applicable electronic invoices and notes must be cleared by or reported to ZATCA in accordance with the Phase 2 requirements.
Businesses should therefore not treat FATOORA only as an invoice-format project. Correct clearance, reporting, document processing, and retention can also affect tax compliance and supporting documentation.
How Long Must FATOORA Records Be Kept?
Electronic invoicing does not replace the underlying Saudi VAT record-retention requirements.
The standard VAT record-retention period is generally at least six years.
Longer minimum periods apply to certain capital-asset records, including:
- 11 years for relevant movable capital-asset invoices and records.
- 15 years for relevant immovable capital-asset invoices and records.
Businesses should ensure that invoice records remain accessible and can be provided to ZATCA when required.
Common FATOORA Compliance Problems
Common issues include:
- Sending a standard tax invoice to the customer before successful clearance.
- Missing the 24-hour reporting period for simplified invoices.
- Incorrect XML structure.
- Missing mandatory invoice fields.
- Incorrect VAT treatment or customer classification.
- QR-code configuration errors.
- Incorrect CSID or EGS onboarding.
- Failed API integrations that are not properly monitored.
- Using systems that allow prohibited invoice alteration or deletion.
- Weak invoice archiving and record retention.
- Waiting until the integration deadline before testing production workflows.
FATOORA Readiness Checklist
Before your Phase 2 deadline, confirm that you have:
- Verified your ZATCA wave and mandatory integration date.
- Mapped every system that generates invoices or notes.
- Identified each EGS unit that needs onboarding.
- Reviewed VAT master data.
- Reviewed invoice and customer classifications.
- Implemented the required XML structure.
- Implemented the relevant security requirements.
- Completed CSID onboarding.
- Tested standard tax-invoice clearance.
- Tested simplified invoice reporting.
- Established monitoring for rejected invoices and API failures.
- Confirmed invoice storage and retention procedures.
ZATCA FATOORA Support With IncorpKSA
FATOORA compliance involves more than switching on an accounting-software feature. The business must align its VAT configuration, invoicing process, technical solution, system onboarding, clearance and reporting flows, and record keeping.
IncorpKSA can support businesses with FATOORA readiness and the wider Saudi operational setup, including:
- ZATCA and VAT setup coordination.
- FATOORA readiness assessment.
- ERP and invoicing-process review.
- CSID and onboarding coordination.
- Invoice-process and compliance review.
- Government and operational compliance support.
Contact IncorpKSA to discuss your FATOORA readiness and Saudi compliance requirements.
ZATCA FATOORA FAQs
Who must comply with ZATCA FATOORA?
Persons subject to the Saudi E-Invoicing Regulation must comply with the applicable requirements. Phase 1 applies broadly to taxpayers subject to the regulation, while Phase 2 integration is implemented gradually through waves communicated by ZATCA.
What is the latest FATOORA Phase 2 wave?
As of October 2026, the latest wave published by ZATCA is Wave 25. It includes taxpayers whose VAT-subject revenues exceeded SAR 187,500 during 2022, 2023, 2024, or 2025. The announced integration deadline is February 1, 2027.
What is the difference between clearance and reporting?
Standard tax invoices are submitted to ZATCA for clearance before the cleared invoice is shared with the customer. Simplified tax invoices are generated by the taxpayer’s compliant solution and reported to ZATCA within 24 hours.
Do Phase 2 invoices need to be XML?
Phase 2 invoicing solutions must support the structured formats required by ZATCA. Electronic invoices can be generated in XML or PDF/A-3 with embedded XML in accordance with the applicable technical requirements.
Do I have to use a ZATCA-listed software provider?
No. ZATCA’s Solution Providers Directory is indicative. A taxpayer can use another provider or an internally developed solution provided that the solution meets the applicable e-invoicing requirements.
What is a CSID in FATOORA?
CSID stands for Cryptographic Stamp Identifier. It forms part of the onboarding and security framework used by Phase 2 Electronic Generation Solution units.
How quickly must simplified invoices be reported?
Phase 2 simplified tax invoices must be reported to ZATCA within 24 hours of issuance.
How long should electronic invoices be retained?
The normal Saudi VAT record-retention period is at least six years, with longer periods applying to certain movable and immovable capital-asset records.
