ZATCA (Zakat, Tax and Customs Authority) E-invoicing Phase 2 involves the need for businesses in Saudi Arabia to connect their ERP/Invoicing systems directly to the Fatoora platform to enable real-time, compulsory clearance of B2B invoices, as well as the reporting of B2C invoices in XML or PDF/A-3 format. Some of the main steps in Saudi e-invoicing compliance involve obtaining a digital signature, using UUIDs, and the need to have met wave-specific deadlines (already over in 2025).
ZATCA E-Invoicing Phase 2 Compliance Checklist
- Determine your Wave
Check which wave your business falls into based on your revenue, and find out your deadline based on that. ZATCA has announced the 23rd wave of Phase 2 e-Invoicing integration, which requires specific taxpayers to connect their systems to the Fatoora platform. Relevant businesses must get compliant between Jan 1 2026, and March 31 2026. Wave 23, which was announced in June 2025, continues the compulsory integration requiring validation and electronic invoice clearance.
- Upgrade System/Solution
Ensure that your new system is compliant with ZATCA. The new system must also support PDF/A-3 or XML formats, as well as have API integration built into it.
- Obtain Digital Certificate
Acquire a cryptographic stamp or a digital certificate from an approved Certification Authority (CA) in order to sign invoices electronically (e-invoices).
- Connect via API
You must be able to integrate your new system with the ZATCA Fatoora platform to allow for real-time validation. (Clearance for B2B, Reporting for B2C)
- Implement Technical Requirements
With your new invoice creation software, you must be able to:
- Generate a Universally Unique Identifier for each invoice (UUID)
- Include a cryptographic stamp on the invoice
- Generate a QR code
- Ensure sequential numbering
- Test in sandbox
Make sure that you test the integration completely in a sandbox environment to ensure that you can make error-free submissions.
- Training of your staff
You need to ensure that all your employees have been given sufficient training in order to be able to handle the new invoicing workflow, as well as how to manage rejected invoices.
- Data retention
You need to be able to ensure that invoices can be stored for the stipulated period of time in a secure, tamper-proof and compliant manner.
Follow the above ZATCA Phase 2 checklist to stay compliant with ZATCA regulations in Saudi Arabia. If your business is non-compliant with the ZATCA e-invoicing Phase 2 requirements even after the deadline of the wave you fall under, then there are fines ranging from SAR 5,000 to SAR 50,000.
