Saudi Arabia officially introduced electronic invoicing under the FATOORAH system, with Phase 1 becoming mandatory in December 2021. This initial phase required businesses to issue structured e-invoices instead of paper or PDF formats. The second phase, which began in January 2023, involves integrating accounting systems directly with ZATCA, the national tax authority, enabling real-time validation of transactions.
The Saudi e-invoicing mandate aligns with international standards and aims to modernize tax administration, improve compliance, and reduce fraud. B2Brouter, as a certified Peppol Access Point, supports companies operating internationally by ensuring compatibility with the Saudi system and secure invoice exchange.
Important dates
February 1, 2024
Taxpayers with SAR 150 million+ in turnover were required to comply with Phase 2 integration.
June 1, 2025 (Preliminary)
A new compliance wave is expected, potentially affecting businesses with lower revenue thresholds.
Legislation
- Mandatory B2G invoicing
E-invoicing is mandatory for all B2G, B2B, and B2C transactions under FATOORAH since 2021.
- Archiving requirements
Invoices must be stored electronically in Saudi Arabia for at least six years.
- Phase-based compliance
Implementation is divided into waves, depending on the taxpayer’s annual revenue.
- Digital signature
E-invoices must include a cryptographic stamp to ensure authenticity and integrity.
- QR code inclusion
Simplified invoices must display a QR code for easy consumer verification.
- Pre-clearance model
Standard invoices require real-time approval by ZATCA before being shared with buyers.
- Penalties for non-compliance
Businesses failing to comply may face financial penalties and system access restrictions.
Accepted formats
Invoices must use the XML format (UBL 2.1) with additional ZATCA-compliant data structures.
Delivery channels
Invoices are transmitted via integrated systems connected to ZATCA's central platform.
Regulating authority
The Zakat, Tax and Customs Authority (ZATCA) oversees compliance and system certification.
Send e-invoices to Saudi Arabia securely with B2Brouter
Real-time ZATCA integration
Send and validate invoices directly via B2Brouter’s secure API connection with ZATCA.
Seamless FATOORAH compliance
Our platform ensures your invoices meet ZATCA’s requirements with structured data and digital signatures.
Automatic invoice conversion
Generate compliant XML invoices automatically from your current billing system, reducing manual effort.
International interoperability
As a certified Peppol Access Point, B2Brouter simplifies cross-border invoicing with global partners.
Certifications
B2Brouter is certified with the ISO 27001 standard on information security management, certified as a Peppol Access Point Service Provider and a member of the EESPA.
