# E-Invoicing in Saudi Arabia: 15 Common Questions Answered *15 questions business owners keep asking, answered without the jargon* > **In short:** The 15 questions business owners ask most about e-invoicing in Saudi Arabia, with plain answers on ZATCA rules, Phase Two, penalties and software. - **URL:** https://www.snad.io/en/blog/alfatura-aliliktruniya-asilat-shaiya - **Arabic original:** https://www.snad.io/blog/alfatura-aliliktruniya-asilat-shaiya - **Category:** Explainers — ZATCA & Tax - **Tags:** e-invoicing, ZATCA, VAT, FAQ, tax compliance - **Published:** 2025-10-19 - **Updated:** 2026-08-02 - **Publisher:** Snad (snad.io) Ever since e-invoicing came into force, business owners have been asking a lot of questions — some straightforward, some very technical. This article collects the ones that come up most often in entrepreneur communities, and answers each of them clearly and practically. ## Questions about who is covered and registration Is every company required to issue electronic invoices? Only companies registered for Value Added Tax (VAT). Registration becomes mandatory once annual revenue exceeds SAR 375,000. My company's revenue is below SAR 375,000 — am I affected? You are not subject to mandatory registration at present. But if you supply a large company, it may ask you for a tax invoice. Voluntary registration is advisable once you pass SAR 187,500. Do invoices issued to individuals differ from invoices issued to companies? Yes. A B2C invoice to an individual is a simplified invoice with a QR code. A B2B invoice to a company is a full tax invoice and carries the buyer's complete details. Do restaurants that sell only to individuals need electronic invoices? Yes. A simplified invoice in the form of a point of sale (POS) receipt with a QR code is enough for sales to individuals. ## Questions about invoice format and content Does an invoice in Word or Excel count as electronic? No. An electronic invoice must be generated by an approved system in XML or PDF/A-3 format with an encrypted QR code. Word and Excel are never acceptable. Which fields are mandatory on the invoice? The seller's name, commercial registration (CR) number, VAT number, issue date, sequential number, product description, VAT amount, total, and QR code. B2B invoices also carry the buyer's name and VAT number. Can I photograph a paper invoice and send it? No. A photo or a scan does not count as an electronic invoice accepted by the Zakat, Tax and Customs Authority (ZATCA). How do I check that an invoice's QR code is valid? Use ZATCA's official app, Fatoora. Hold the QR code in front of the camera and a summary of the invoice data appears. ## Questions about Phase Two What is the difference between Phase One and Phase Two in plain terms? Phase One (generation): issue a valid electronic invoice and keep it. Phase Two (integration): before you send the invoice to the customer, send it to ZATCA first for validation and electronic stamping. When will my restaurant or shop enter Phase Two? ZATCA is rolling it out in stages, from the largest companies down to the smallest. You will receive an official notice 6 months before your date. Keep an eye on the email address registered with ZATCA. Can the integration with ZATCA be done manually? No. Integration happens only through an accounting system that supports the API and connects to the ZATCA platform automatically. What happens if the internet goes down while I am in Phase Two? ZATCA provides an offline mechanism. The invoice is issued locally, then sent automatically once the connection is restored. ## Questions about penalties What is the penalty for failing to issue an electronic invoice? A fine starting at SAR 1,000 per violation, rising with each repetition. Does ZATCA audit everyone? Audits start with the largest companies, but no one is immune — particularly where there are inconsistencies between tax returns and invoices. Can an invoice issued in error be corrected? Yes. You issue a credit note to cancel the incorrect invoice, then issue a new, correct one. Is there a voluntary settlement route for anyone who did not comply earlier? ZATCA has made voluntary settlement programs available. Voluntary disclosure reduces penalties considerably. Waiting increases them. ## Questions about systems and software Is every invoicing program compliant with ZATCA? No. Make sure the software explicitly supports the requirements of both Phase One and Phase Two. What happens if the software I use does not support ZATCA? You need to move to a compliant system before your Phase Two date arrives. Leaving it to the last minute puts you in a difficult position. Is Snad compliant with ZATCA? Yes. Snad supports ZATCA's requirements in full and issues both simplified and detailed electronic invoices with a QR code and automatic archiving. Can I migrate to Snad from another system? Yes, you can migrate at any time. The support team will help you bring your historical data across. ## Frequently asked questions ### Does a cashier receipt count as an electronic invoice? A POS receipt generated by an approved system with a QR code counts as a compliant simplified invoice. A traditional paper receipt does not. ### Does the invoice have to be in Arabic? It can be in Arabic, in English, or in both. What matters is that all the mandatory fields are complete. --- ## About the publisher **Snad (سند)** — a private Saudi software company based in Riyadh, founded 2025. Legal form: Sole proprietorship. Commercial registration: 7038154642 VAT number: 310959226500003 Only official domain: snad.io > Snad is a private commercial business-management platform. It is not a > government body, not a bank, and not a government services portal, and it > is not affiliated with any government entity. Any site or app with a > similar name is unrelated to Snad.