What is ZATCA e-invoicing?

ZATCA e-invoicing, also known as Fatoorah, is Saudi Arabia's electronic invoicing system introduced by the Zakat, Tax and Customs Authority (ZATCA). It replaces paper-based and manually generated invoices with structured electronic invoices that are created, stored, and exchanged through compliant electronic solutions.

Under the system, an electronic invoice is generated in a structured format through an electronic solution. Simply scanning a paper invoice or converting it into a PDF does not make it an e-invoice.

ZATCA e-invoicing applies to both tax invoices and simplified tax invoices, along with related credit and debit notes. The implementation is divided into two main phases. Phase 1 focuses on generating and storing compliant electronic invoices, while Phase 2 requires businesses to integrate their e-invoicing solutions with ZATCA's Fatoora platform.

Businesses must therefore use an e-invoicing solution that meets ZATCA's technical, security, and invoice-format requirements. Platforms such as Complyance can help businesses manage compliant invoice generation and prepare their existing ERP or accounting systems for ZATCA integration.

Key points

• ZATCA e-invoicing is also known as Fatoorah.
• It replaces paper and manually generated invoices with structured electronic invoices.
• PDF or scanned invoices alone are not considered e-invoices.
• The system covers tax invoices, simplified tax invoices, credit notes, and debit notes.
• Phase 2 requires integration with ZATCA's Fatoora platform.