Arrow LeftReturn to map

Electronic Invoicing in Saudi Arabia

Saudi Arabia has made electronic invoicing the backbone of its VAT system. Under the FATOORAH framework, the Zakat, Tax and Customs Authority (ZATCA) not only requires e-invoices to be issued but also validates them in real time or requires their reporting within 24 hours, transforming the day-to-day operations of any company issuing invoices in the Kingdom.

AlbaniaAngolaArgentinaAustraliaAustriaAzerbaijanBahrainBangladeshBelgiumBeninBoliviaBosnia and HerzegovinaBrazilBulgariaBurkina FasoBurundiCambodiaCanadaCape VerdeChadChileChinaColombiaCosta RicaCote d'IvoireCroatiaCyprusCzech RepublicDenmarkDominican RepublicEcuadorEgyptEl SalvadorEstoniaFinlandFranceGambiaGermanyGhanaGreeceGuatemalaHungaryIcelandIndiaIndonesiaIrelandIsraelItalyJapanJordanKazakhstanKenyaLatviaLesothoLithuaniaLuxembourgMadagascarMalaysiaMauritiusMexicoMoroccoNetherlandsNew ZealandNigerNigeriaNorwayOmanPakistanPanamaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRussiaRwandaSaudi ArabiaSerbiaSingaporeSlovakiaSloveniaSouth AfricaSouth KoreaSpainSri LankaSwedenSwitzerlandTaiwanTanzaniaThailandThe United Arab EmiratesTogoTunisiaTurkeyUgandaUkraineUnited KingdomUnited StatesUruguayUzbekistanVenezuelaVietnamZambiaZimbabwe

Characteristics of B2B and B2C Electronic Invoicing in Saudi Arabia

In December 2020, the Zakat, Tax and Customs Authority (ZATCA) published the e-invoicing regulation, known as FATOORAH, aiming to digitalize tax processes, reduce tax evasion, and enhance commercial transparency.
Implementation was planned in two progressive phases affecting all natural and legal persons registered for VAT purposes in the Kingdom of Saudi Arabia (KSA).

Phase 1 – Generation: Effective Date: December 4, 2021

  • Requirements: Mandatory issuance, receipt, and archiving of invoices and notes (credit and debit) in electronic format through a solution compatible with ZATCA’s technical specifications.
  • Objective: Eliminate manual or paper issuance and ensure digital traceability of all transactions.

Technical Characteristics:

  1. Generation of invoices in structured format (XML or PDF/A-3 with embedded XML).
  2. Inclusion of mandatory fields such as tax identification number, date, invoice type, and buyer/seller details.
  3. Generation of a unique hash per invoice to ensure integrity and prevent tampering.

Phase 2 – Integration: Start Date: January 1, 2023

  • Gradual rollout: ZATCA notifies each taxpayer at least six months in advance of their specific onboarding date.
  • Objective: Establish technical integration between the taxpayer’s invoicing systems and ZATCA’s systems via APIs.

New Requirements:

  • Validation (clearance) of invoices by ZATCA before delivery to the customer.
  • Cryptographic signature using a digital certificate issued by an authorized provider (for B2C).
  • Generation of a UUID (Universally Unique Identifier) and a QR code in accordance with the authority’s standards.
  • Real-time or near real-time communication of simplified invoices.

Mandatory Use

For the B2B sector, ZATCA established a phased schedule based on company turnover. The obligation began in January 2023 for large taxpayers with annual revenue exceeding 3 billion Saudi riyals.

Throughout 2025, additional waves have been implemented, now affecting small and medium-sized enterprises (as of September 2025 for taxpayers with income above 1.25 million Saudi riyals).

Invoice Format

Each invoice must comply with the XML (UBL) schema defined by the authority, which specifies the mandatory fields and data hierarchy.

  • Structured format: Native XML.
  • Human-readable format: PDF/A-3 with embedded XML, allowing the document to be viewed while preserving the technical structure required by ZATCA.

Electronic Signature

In the B2B domain, no electronic signature is required since validation is performed through direct communication with ZATCA’s platform.

For B2C, an electronic signature is mandatory, generated with a cryptographic certificate ensuring the issuer’s authenticity and document integrity.

Archiving

Invoices must be electronically archived along with all related data for six years.

Get ahead of new mandates

Check the global compliance calendar and discover when e-invoicing and e-reporting regulations come into effect in each country.
Go to calendar

Invoice Workflow for B2B and B2C in Saudi Arabia

The electronic invoicing model in Saudi Arabia is different between B2B and B2C.

B2B Scope – Validation (Clearance) Model

  • The taxpayer generates the electronic invoice in their system.
  • Before sending it to the customer, it must be transmitted electronically to ZATCA for validation.
  • Once approved, ZATCA returns a validated version with a digital seal and a unique control number, which can then be shared with the buyer.
  • No B2B invoice is considered legally valid without this prior approval.

B2C Scope – Reporting Model

Simplified invoices (issued to end consumers) may be delivered to the customer immediately. However, they must be sent to the FATOORAH portal within a maximum of 24 hours from issuance.
They must include a QR code generated automatically that contains:

  • Seller’s name
  • VAT Identification Number
  • Date and time of issuance
  • Total amount and VAT amount
  • Cryptographic signature

This QR code allows consumers to verify the authenticity of the document by scanning it with the ZATCA app or any authorized reader.

Get ahead of new mandates

Check the global compliance calendar and discover when e-invoicing and e-reporting regulations come into effect in each country.
Go to calendar

Latest in our resource center

See all

One Platform. Endless Solutions.

Contact our specialists to answer all your questions about adapting your business to any EDI, e-invoicing and tax reporting system worldwide.

  • Proprietary SaaS solutions

  • International customer support service

  • 99.9% guaranteed availability

  • Managed services

  • International certifications and standards

  • Flow maintenance and integration services