E-invoicing and ZATCA compliance built into Snad
Snad is a Saudi business management system fully aligned with the requirements of the Zakat, Tax and Customs Authority for both Phase 1 and Phase 2. Issue approved XML and PDF/A-3 e-invoices with a QR code and a digital signature — automatically, and without the complexity.
How does Snad handle ZATCA requirements?
Full compliance built into the system — no add-ons, no customisation
XML and PDF/A-3 invoices
Issue e-invoices automatically in the formats approved by the Zakat, Tax and Customs Authority.
QR code and digital signature
Every invoice carries a QR code and a digital signature approved by the Zakat, Tax and Customs Authority.
Instant link to the Fatoora platform
Integration with the Fatoora platform for Phase 2 — invoices are submitted and cleared automatically.
Automatic VAT calculation
Value added tax of 15% is calculated automatically on every transaction.
Phase 1 versus Phase 2 — a detailed comparison
The official requirements of each phase of the Zakat, Tax and Customs Authority e-invoicing system
| 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 |
Source: the Zakat, Tax and Customs Authority e-invoicing requirements — zatca.gov.sa
The two invoice types in Phase 2 — and why they are handled differently
The difference between clearance and reporting determines when you may hand the invoice to your customer.
| Invoice type | Where it applies | Handling model | Timing |
|---|---|---|---|
| Standard tax invoice | Business to business (B2B) | Clearance | Before sharing it with the buyer |
| Simplified tax invoice | Business to consumer (B2C) | Reporting | Within 24 hours of issuance |
Standard tax invoice
It is transmitted to the FATOORA platform through integration, ZATCA verifies that it fulfils the specified controls and details, and it is shared with the buyer only once cleared.
Simplified tax invoice
Clearance does not apply to it. It is handed to the customer immediately, then submitted to the FATOORA platform in XML format within 24 hours of generation using APIs.
A worked example
A retail store 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 of the transaction.
Source: Detailed Guidelines for E-Invoicing — Zakat, Tax and Customs Authority, Version 2 (May 2023) zatca.gov.sa
Does Phase 2 apply to you? The announced waves
ZATCA rolls out integration in successive waves, and the criterion for each wave is annual VAT-taxable revenue.
| Wave | Revenue exceeding | Assessment years | Integration deadline |
|---|---|---|---|
| Wave 24 | SAR 375,000 | 2022 أو 2023 أو 2024 | 30 June 2026 |
| Wave 25Current wave | SAR 187,500 | 2022 أو 2023 أو 2024 أو 2025 | 1 February 2027 |
You do not have to track the announcements yourself
The Zakat, Tax and Customs Authority (ZATCA) notifies the taxpayers targeted in each wave directly, at least six months before the integration deadline.
Steps to get ready for FATOORA integration
Five steps separate your business from full Phase 2 readiness — in their official order.
- 1
Identify your wave
Compare your VAT-taxable revenue against each wave's threshold in the table above. ZATCA notifies targeted taxpayers directly at least six months before the deadline, so the notice reaches you first and you are not required to monitor announcements yourself.
- 2
Prepare a compliant invoicing solution
The solution must generate Phase 2 invoices in XML format, or PDF/A-3 with embedded XML. A solution that only outputs a PDF is not sufficient for Phase 2, however acceptable it was in Phase 1.
- 3
Onboard the solution through FATOORA
The invoice generation unit is registered on the FATOORA portal, which issues it a Cryptographic Stamp Identifier (CSID) linking it to your identity as a taxpayer. The identifier can later be renewed or revoked, and you can review the list of onboarded solutions and devices.
- 4
Stamp invoices and add the QR code
The solution stamps the XML with the identifier issued by ZATCA and adds a QR code matching the Phase 2 specification, carrying its nine tags in TLV format encoded in Base64.
- 5
Submit according to invoice type
Standard tax invoices are submitted for clearance before being shared with the buyer, while simplified invoices are reported within 24 hours of issuance — both through APIs with the FATOORA platform.
Source: Detailed Guidelines for E-Invoicing — Zakat, Tax and Customs Authority, Version 2 (May 2023) zatca.gov.sa
Both phases at a glance
Snad is fully compliant with both Phase 1 and Phase 2
Phase 1 — Invoice generation
Issuing XML and PDF/A-3 e-invoices with a QR code instead of paper invoices. Snad creates these invoices automatically with every sale.
Phase 2 — Integration with Fatoora
A direct link to the Fatoora platform of the Zakat, Tax and Customs Authority, submitting invoices electronically for immediate clearance and receiving the approved cryptographic stamp.
Frequently asked questions about ZATCA and e-invoicing
Straight answers to the questions we hear most
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