Question 1

What is the Zakat, Tax and Customs Authority (ZATCA)?

Accepted Answer

The Zakat, Tax and Customs Authority (ZATCA) is the Saudi government body responsible for collecting zakat, value added tax and customs duties in the Kingdom of Saudi Arabia, and it is the authority that launched the mandatory e-invoicing system for businesses.

Question 2

What is the difference between Phase 1 and Phase 2 of e-invoicing?

Accepted Answer

Phase 1 (invoice generation): issuing e-invoices in XML format with a QR code instead of paper invoices. Phase 2 (integration): connecting the invoicing system to the Fatoora platform of the Zakat, Tax and Customs Authority and sending invoices electronically for immediate clearance. Snad is compliant with both phases.

Question 3

Is Snad approved by the Zakat, Tax and Customs Authority?

Accepted Answer

Yes. Snad fully meets the e-invoicing requirements of the Zakat, Tax and Customs Authority: it issues invoices in XML and PDF/A-3 formats with the approved digital signature and QR code.

Question 4

Can I connect Snad to the Fatoora platform of the Zakat, Tax and Customs Authority?

Accepted Answer

Yes. Snad supports integration with the Fatoora platform of the Zakat, Tax and Customs Authority for Phase 2, including submitting invoices electronically to obtain the cryptographic stamp and have the invoice cleared.

Question 5

Does Snad calculate VAT automatically?

Accepted Answer

Yes. Snad calculates value added tax (15%) automatically on every transaction and includes it correctly on the e-invoice, in line with the requirements of the Zakat, Tax and Customs Authority.

Question 6

Which e-invoice formats does Snad support?

Accepted Answer

Snad issues e-invoices in XML format (for integration with the Zakat, Tax and Customs Authority) and in PDF/A-3 format (for sharing with customers), each with a QR code and an approved digital signature.

Question 7

When did compliance with the Zakat, Tax and Customs Authority become mandatory?

Accepted Answer

Phase 1 became mandatory in December 2021. Phase 2 has been rolled out to companies gradually according to the size of their revenue since January 2023, and has since expanded to cover most Saudi companies.

Question 8

Can I issue invoices from Snad to customers outside the Kingdom?

Accepted Answer

Yes. Snad supports export invoices for customers outside the Kingdom in approved formats, including transacting in different currencies while accounting for them in SAR.

Question 9

Does Snad produce the monthly tax return?

Accepted Answer

Snad provides monthly and quarterly VAT reports that help you prepare your tax return for the Zakat, Tax and Customs Authority accurately and easily.

Question 10

How does Snad differ from competitors when it comes to the Zakat, Tax and Customs Authority?

Accepted Answer

Snad is built entirely for the Saudi market and is aligned with the Zakat, Tax and Customs Authority from day one, with no add-ons or customisation. Meanwhile, some international systems (such as Odoo) need additional modules and complex customisation to achieve the same compliance.

Item	Phase 1 — Generation	Phase 2 — Integration
Start date	4 December 2021	1 January 2023 (in waves, by revenue size)
Required invoice format	PDF/A-3 + QR Code	XML / UBL 2.1 + QR + digital signature
Integration with the Fatoora platform	Not required	Required — the invoice must be sent within 24 hours of being issued
Digital signature	Optional	Mandatory on every invoice
Invoice UUID	Not required	Mandatory — generated automatically by Snad
Cryptographic stamp	Not required	Mandatory once connected to the Fatoora platform
Businesses in scope	All VAT-registered businesses	Applied in waves based on annual revenue
Snad status	Fully compliant	Fully compliant — ready to integrate immediately

E-invoicing and ZATCA compliance built into Snad

How does Snad handle ZATCA requirements?

XML and PDF/A-3 invoices

QR code and digital signature

Instant link to the Fatoora platform

Automatic VAT calculation

Phase 1 versus Phase 2 — a detailed comparison

Both phases at a glance

Phase 1 — Invoice generation

Phase 2 — Integration with Fatoora

Frequently asked questions about ZATCA and e-invoicing

Start with Snad and be compliant with the Zakat, Tax and Customs Authority from day one