E-invoicing in Saudi Arabia: its phases and waves, and what Snad does at each one
The Zakat, Tax and Customs Authority rolls out e-invoicing in two phases, the second in waves by revenue. Every date is sourced, with what Snad handles on Basic and Pro.
Fatoora linkage takes a one-time OTP. Start on the free Starter plan and link when you upgrade.
From the regulation to Wave 25
Every date here comes from ZATCA's own announcements.
- 4 December 2020
E-invoicing regulation published
The legal basis for both phases: invoices and notes issued electronically, not on paper or by hand.
Simplified guide to e-invoicing requirements, June 2022 - 28 May 2021
Controls and requirements resolution published
It set the e-invoice requirements, fields and technical specifications, and the dates of both phases.
Simplified guide to e-invoicing requirements, June 2022 - 4 December 2021
Phase 1: generation and storage
Invoices, credit notes and debit notes are issued and stored electronically with a compliant solution, and simplified invoices carry a QR code.
Simplified guide to e-invoicing requirements, June 2022In SnadThe invoice is issued and stored in Snad, and printed with a QR code for Saudi organizations.
- 1 January 2023
Phase 2: integration
The solution is linked to the Fatoora platform in waves set by revenue, and the invoice is XML or PDF/A-3 with embedded XML.
Simplified guide to e-invoicing requirements, June 2022In SnadOn Basic and Pro, Snad sends every invoice to Fatoora as signed XML, after a one-time OTP onboarding.
Does Phase Two cover you? The announced waves
ZATCA applies integration in successive waves, and each wave is defined by annual revenue subject to value added tax.
| Wave | Revenue above | Qualifying years | Announced | Integration deadline |
|---|---|---|---|---|
| Wave 24 | SAR 375,000 | 2022 or 2023 or 2024 | 26 September 2025 | 30 June 2026 |
| Wave 25Latest announced | SAR 187,500 | 2022 or 2023 or 2024 or 2025 | 24 July 2026 | 1 February 2027 |
ZATCA notifies covered businesses directly
The Zakat, Tax and Customs Authority (ZATCA) notifies the taxpayers targeted in each wave directly, at least six months before the integration deadline.
Two invoices, two routes: clearance and reporting
The difference between clearance and reporting determines when you may hand the invoice to your customer.
- Clearance
Tax invoice
It is sent to the Fatoora platform through the integration and cleared by ZATCA, and it is shared with the buyer only after clearance.
In SnadSnad sends a tax invoice for clearance as soon as it is saved, and the ZATCA screen shows each document's result.
- Reporting
Simplified invoice
Clearance does not apply: it is handed to the customer at once, then reported to the platform within 24 hours of issue.
In SnadSnad reports simplified invoices through a scheduled job. If a document is rejected, the ZATCA screen shows why, and you resend it from there.
A worked example
A retail shop issues a simplified invoice to a walk-in buyer and completes the sale on the spot, then reports the invoice to ZATCA within 24 hours.
Source: Detailed guidelines for e-invoicing — ZATCA, version 2 (May 2023)
Phase One vs. Phase Two: the requirements
What ZATCA requires in each phase, according to its simplified guide.
| Item | Phase One — generation | Phase Two — integration |
|---|---|---|
| Start | 4 December 2021 | 1 January 2023, in waves |
| Required | Issue and store invoices and notes with a compliant solution | The above, plus linking the solution to the Fatoora platform |
| Invoice format | Structured electronic — not paper, not a scan | XML, or PDF/A-3 with embedded XML |
| QR code | Mandatory on simplified invoices | Mandatory, with extra fields such as the invoice hash and signature |
| Cryptographic stamp and UUID | Not required | Mandatory |
| Sending to ZATCA | Not required | Tax invoices cleared before sharing; simplified invoices reported within 24 hours |
Source: Simplified guide to e-invoicing requirements — ZATCA (June 2022)
Linking with the Fatoora platform, step by step — and who does each step
Five steps in the order of ZATCA's guide, each with what Snad does and what stays with you.
- 1
Find your wave
Compare your revenue subject to VAT with each wave's threshold. ZATCA notifies targeted businesses at least six months before the deadline.
On youYou check ZATCA's notice and official channels.
- 2
Choose a compliant solution
It must issue Phase Two invoices as XML or PDF/A-3 with embedded XML. A solution that only outputs PDF is not enough.
In SnadSnad sends every invoice as signed XML, on Basic and Pro.
- 3
Onboard the solution on the Fatoora portal
On the Fatoora portal you generate an OTP and enter it in the solution, which then receives a cryptographic stamp identifier (CSID) tied to your VAT number.
On youYou enter the code on the ZATCA screen in Snad's settings, which first checks your currency, country and VAT number format.
- 4
Stamp invoices and add the QR code
The solution stamps the XML file with the identifier ZATCA issued, and adds a QR code with the Phase Two fields.
In SnadSnad handles the stamp and QR code through its e-invoicing service, and generates the UUID and the invoice sequence.
- 5
Send by invoice type
Tax invoices go for clearance before they are shared with the buyer; simplified invoices are reported within 24 hours of issue.
In SnadTax invoices on save, simplified invoices by a scheduled job. The ZATCA screen shows any rejection and its reason.
Source: Simplified guide to e-invoicing requirements — ZATCA (June 2022)
What Snad handles, and what stays with you
The first list comes from the product itself; the second is the steps you take yourself.
In Snad
- Fatoora linkage on Basic and Pro, for Saudi organizations invoicing in SAR.
- A one-time OTP onboarding from the Fatoora portal, and certificate renewal with a new code from the same screen.
- Every invoice is sent as signed XML, with a UUID, the invoice counter and the previous invoice's hash.
- Tax invoices go for clearance as soon as they are saved; simplified invoices are reported automatically.
- A return is sent as a credit note linked to the original invoice.
- The ZATCA screen shows each document's status and the reason for any rejection, and you resend from there.
- VAT at your tax group's rate (15% by default) on every invoice.
On you
- Find your wave from ZATCA's notice and official channels.
- Generate an OTP on the Fatoora portal and enter it on Snad's ZATCA screen.
- Prepare and file your VAT return; the trial balance and invoice reports give you its figures.
- Move from the free Starter plan to a paid plan before linking.
Frequently asked questions about ZATCA and e-invoicing
Still have questions? Contact us
Link your invoices with Fatoora from the Basic plan
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