E-Invoicing Phase 2 Requirements — ZATCA Integration
Understand the Phase 2 requirements and get ready for the Integration Phase when your business is targeted. Fatora supports invoice and field setup and the integration requirements, with clearance for standard tax invoices and reporting for simplified tax invoices, depending on the invoice type and your mandatory date.
- Issue e-invoices in XML format with the technical requirements specified for Phase 2.
- Clearance of standard tax invoices through the Fatoora platform before they are shared with the customer.
- Reporting of simplified tax invoices to the Fatoora platform within 24 hours of issuance, as required by ZATCA.
- Support for setup, testing, integration, and go-live steps based on your business’s needs.
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What Is the Difference Between Phase 1 and Phase 2?
E-invoicing in Saudi Arabia is applied in two phases: the Generation Phase, for issuing and storing invoices, followed by the Integration Phase, which is rolled out gradually to groups selected by ZATCA.
Phase 1 — Generation
Create and Store Invoices Electronically
- Issue electronic invoices instead of paper ones.
- Include a QR code on simplified tax invoices.
- Store invoices and records electronically in line with regulatory requirements.
- No direct integration with ZATCA is required.
Phase 2 — Integration
Integration with ZATCA’s Fatoora Platform
- Integrate your invoicing system with the Fatoora platform of the Zakat, Tax and Customs Authority.
- Issue invoices in the required electronic format and add the additional technical fields.
- Clear standard tax invoices and report simplified tax invoices, following each type’s process.
- Comply with the security and anti-tampering features and the technical requirements specified for the solution.
Who Must Implement Phase 2?
Phase 2 is being rolled out gradually to groups of taxpayers selected by ZATCA based on the criteria of each wave, and ZATCA notifies targeted businesses before their assigned integration date.
Businesses That Receive a Notification
ZATCA notifies each targeted taxpayer of their group’s integration date ahead of the mandatory date.
Groups Are Set by Each Wave’s Criteria
Targeting criteria vary from one wave to the next, as announced by the Zakat, Tax and Customs Authority.
Meeting Your Group’s Date
Mandatory implementation starts for a business on the date specified in ZATCA’s notification for the targeted wave.
Important: Check ZATCA’s notification and your integration date
- Failure to comply with invoicing and tax requirements may result in penalties that vary depending on the type of violation and the applicable regulation.
- Rely on the notification from the Zakat, Tax and Customs Authority to determine when Phase 2 becomes mandatory for your business.
- Start setup and testing before the deadline to reduce the risk of errors when you go live.
How Do You Prepare for ZATCA Integration?
Technical details vary depending on your business setup and invoice types, but the integration journey usually goes through setup and testing, then go-live.
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1
Review Business and Solution Readiness
Review your business data, invoice types, the units in use, and the requirements of the wave your business was notified about before starting the technical setup.
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2
Onboarding, OTP, and CSID Setup
Set up the solution units and complete the onboarding steps, including generating an OTP and submitting a CSR to obtain a Compliance CSID, then passing the compliance checks and obtaining a Production CSID through the Fatoora platform process.
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3
Compliance and Integration Testing
Test the XML structure, fields, and security features, then verify the clearance flow for standard tax invoices and the reporting flow for simplified tax invoices.
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4
Go-Live and Monitoring
Move to the production environment, monitor submission results and responses, and resolve any technical errors that may come up during use.
Has Your Business Received Its Integration Notification?
Start reviewing your system’s readiness and your business’s requirements early, so you have enough time for setup and testing before the mandatory date.
Request an Integration Readiness ReviewE-Invoicing Phase 2 FAQs
Phase 2 is the Integration Phase, in which the e-invoicing solutions of targeted taxpayers are integrated with the systems of the Zakat, Tax and Customs Authority (ZATCA). Invoices are issued in the required format, with the specified technical fields and requirements added.
Phase 2 is being rolled out gradually to groups that ZATCA selects based on the criteria of each wave, and ZATCA notifies targeted taxpayers before their assigned integration date.
A standard tax invoice goes through clearance on the Fatoora platform before it is shared with the customer, while a simplified tax invoice is reported to the Fatoora platform within 24 hours of issuance, as required by ZATCA.
The requirements include integration with the Fatoora platform, issuing invoices in XML format with the required technical fields, and onboarding your solution units through OTP and CSID, plus the security features and the clearance and reporting flows, depending on the invoice type.
Fatora supports the e-invoicing integration requirements of Phase 2, including setting up invoice issuance and handling the clearance or reporting flow, depending on the invoice type.
A targeted business must meet the integration date that ZATCA sets in its notification, and it is best to start technical preparation and testing well before the mandatory date.
Get Your Business Ready for Phase 2
Review your invoicing system’s readiness and the integration steps before your business’s mandatory date.
Request an Integration Demo