Are you running a business in Saudi Arabia? If so, you should be familiar with the e-invoicing system, also known as Fatoora. It is a system that replaces traditional paper invoices and manually created notes with digital invoices. The Saudi Arabian Zakat, Tax and Customs Authority (ZATCA) mandates this from certain businesses under the VAT law. This move is part of the government’s digital transformation plan to make transactions more transparent and efficient.
This guide details the steps you need to follow to register on the ZATCA portal.
What should you prepare before registration?
Before you start on the portal, have the following documents and details ready:
- Valid VAT registration number in Saudi Arabia. Without this, you cannot register.
- Legal entity details: company name, commercial registration number (CR Number), good contact, and address details.
- Administrative access to the Saudi Taxation Portal (ERAD) or the FATOORA portal under your TIN (Tax Identification Number).
- An e-invoicing generation software that is compliant with ZATCA standards. If you use Tally Prime, you may need to check or install a module or add-on, or ensure its output meets the XML / PDF/A-3 with embedded XML formats (in Phase 2) and has the required data fields.
- Capability to generate and manage a Certificate Signing Request (CSR) and obtain a Cryptographic Stamp Identifier (CSID), which is mandatory for Integration and Clearance in Phase 2.
How to register on the ZATCA e-invoicing portal?
Here are the steps involved in the ZATCA e-invoicing portal onboarding process:
Step 1: Access and log in
Start by visiting the official ERAD/ZATCA portal. Use your Tax Identification Number (TIN) or registered email to log in. This portal is where you will complete all e-invoicing registration and onboarding activities.
Step 2: Select your EGS unit or device
An E-invoice Generation Solution (EGS) is the system or device you will use to create invoices. On the portal, choose to onboard a new EGS unit or device and specify how many OTPs you need (one per device).
Step 3: Generate one-time passwords (OTPs)
After selecting your EGS, the portal will allow you to generate OTPs. These are needed to authenticate each unit you register. Remember, OTPs are valid only for a short period (usually one hour), so make sure to use them quickly.
Step 4: Create a CSR (Certificate Signing Request)
Next, you must provide details of your EGS by creating a CSR. This includes your details such as your TIN (Organisation Identifier), EGS serial number, and Common Name as required by ZATCA.. Submitting the CSR allows ZATCA to evaluate your system and move you to the compliance check stage.
Step 5: Upload sample invoices and notes
Your system must now pass a compliance check. Using your Compliance CSID, your system will generate and submit sample invoices or credit/debit notes for verification. ZATCA reviews these to ensure the format, fields, QR codes, and other details match technical requirements.
Step 6: Receive your Compliance CSID
If the sample invoices are approved, ZATCA issues a Compliance Cryptographic Stamp Identifier (CSID). This confirms that your system is compliant and can move toward live use.
Step 7: Request your Production CSID
Once compliance is confirmed, you can apply for a Production CSID. This credential is used for real-world invoicing and is generally valid for one year. Keep it secure, and remember to renew or re-issue it before expiry or if it is compromised.
Step 8: Integrate your system with ZATCA (Phase 2)
With the Production CSID in place, you must integrate your system, such as TallyPrime, with the Fatoora platform through APIs. This ensures invoices are automatically sent to ZATCA for validation, cleared in real time, and then delivered to your customers.
Step 9: Start issuing compliant e-invoices
You are now ready to issue official e-invoices that fully meet ZATCA standards. These include XML or PDF/A-3 formats with embedded XML, QR codes, buyer and seller details, timestamps, and sequential invoice numbers.
Step 10: Archive and maintain compliance
Finally, you must store all invoices and notes in electronic form as per ZATCA’s record-keeping requirements. Keep yourself up to date with regulatory changes.
Why your business needs a ZATCA-compliant solution like TallyPrime?
The technical requirements for e-invoicing in Saudi Arabia are very specific. They involve XML formats, cryptographic stamping, hash generation, and API integration. Managing this complexity manually is not feasible. This is why you need a powerful and reliable business management software that handles it all for you.
TallyPrime is accredited by ZATCA as a compliant e-invoicing software. It is designed to make your transition to the Fatoora system effortless.
- Seamless integration: TallyPrime integrates directly with the ZATCA portal, managing the entire onboarding and invoice clearance process from within the software.
- Automated generation: You can generate compliant e-invoices with a single click. TallyPrime automatically handles the XML creation, cryptographic stamping, and QR code generation.
- Stay updated: Tax laws and technical specifications can change. TallyPrime provides regular updates to ensure your business always remains compliant with the latest ZATCA regulations.
- Comprehensive reports: Keep track of all your e-invoicing activities with detailed reports. This gives you a clear view of your compliance status at all times.
E-invoicing in Saudi Arabia is a must for all VAT-registered businesses. The process may look technical at first, but with the right steps and the right software, it becomes simple.
