How do I make my invoicing system ZATCA compliant?

For Phase 2, your system must create UBL 2.1 XML invoices, sign them with a cryptographic stamp, add the Phase 2 QR code and connect to the Fatoora platform. You can switch to a compliant product, connect through an approved provider, or integrate directly.

What is the difference between clearance and reporting?

Clearance applies to standard B2B invoices: ZATCA validates them before they go to the buyer. Reporting applies to simplified B2C invoices such as POS receipts: you send them to ZATCA within 24 hours.

Does my POS need to be ZATCA compliant?

Yes. A POS issues simplified tax invoices, so it must add the Phase 2 QR code, sign invoices and report them within 24 hours, including sales made while offline.

Can you integrate our existing system with ZATCA?

Yes. We connect custom systems, ERPs and POS to Fatoora, either directly or through an approved provider, and test in the ZATCA sandbox before go-live. The work is quoted after we review your system.

ZATCA Compliant Invoicing System: Phase 2 Guide

To make an invoicing system ZATCA compliant for Phase 2, it must generate invoices as UBL 2.1 XML, sign them with a cryptographic stamp, add the Phase 2 QR code and connect to ZATCA's Fatoora platform. B2B invoices are cleared before they reach the buyer; B2C invoices are reported within 24 hours. You can use a compliant product, an approved provider, or a direct integration.

Phase 1 and Phase 2 in one paragraph

Phase 1 (generation) started on 4 December 2021 and requires electronic invoices with the seller's VAT number and a QR code, generated by a compliant system rather than typed in Word or Excel. Phase 2 (integration) started on 1 January 2023 and is being rolled out in waves by revenue. It requires your system to talk to ZATCA directly.

What Phase 2 requires of your system

Invoices generated as structured XML in the UBL 2.1 format, alongside the PDF or printout.
A cryptographic stamp on each invoice, using a certificate (CSID) your system obtains when it is onboarded to Fatoora.
The Phase 2 QR code, which carries more data than the Phase 1 code.
Standard (B2B) tax invoices cleared by ZATCA before they are shared with the buyer.
Simplified (B2C) invoices, such as POS receipts, reported to ZATCA within 24 hours.
Invoice counters and hash chaining so invoices cannot be silently changed or deleted.

Which wave are you in?

ZATCA brings businesses in by VAT-subject revenue and notifies each one directly. Wave 24 covered businesses above SAR 375,000 with a 30 June 2026 deadline. Wave 25 lowers the threshold to SAR 187,500, with an integration deadline of 1 February 2027. Your exact date appears in your Fatoora portal.

Do not leave integration to the last month. Onboarding, sandbox testing and fixing rejected invoices regularly take longer than expected.

Three ways to become compliant

Switch to a product that already supports Phase 2, such as a compliant accounting system, ERP or POS. Simplest if your current system is due for replacement anyway.
Connect your existing system to a ZATCA-approved e-invoicing provider through its API. Good when you want to keep your system and avoid handling certificates yourself.
Integrate directly with Fatoora. Best for custom systems and high volumes, but you own the onboarding, signing and error handling.

What about POS systems?

A ZATCA-compliant POS issues simplified tax invoices with the Phase 2 QR code and reports them within 24 hours. It also has to cope with the internet dropping: invoices are signed locally, queued and reported when the connection returns. Each POS device is onboarded with its own certificate.