ZATCA e-invoicing mandate in Saudi Arabia: The Complete Guide
Saudi Arabia is progressively rolling out new requirements for all transactions: clearance e-invoicing for B2G & B2B and e-reporting for B2C.
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E-Invoicing in Saudi Arabia
Last update: 2026, April 16
Summary
B2G & B2B
E-invoicing partially mandatory
Clearance required for all B2G & B2B transactions through a central platform (Fatoora) for businesses with an annual turnover exceeding 750K SAR (~170 K€)
B2C
E-reporting partially mandatory
E-reporting mandatory for all B2C transactions through a central platform (Fatoora) for businesses with an annual turnover exceeding 750K SAR (~170 K€)
What the Law Says
B2G & B2B E-Invoicing
Saudi Arabia is currently rolling out a nationwide e-invoicing mandate led by the Zakat, Tax and Customs Authority (ZATCA), and applying to all “tax invoices“, i.e. B2G & B2B invoices.
Under this framework, Saudi companies must comply with a clearance model, meaning tax invoices must first be submitted to ZATCA through the central platform Fatoora, which is responsible for validating (“clearing”) the invoice by applying a digital signature. The validated invoice is then returned to the issuer, who is responsible for delivering it to the intended recipient.
The required electronic invoice format is based on UBL 2.1, and relies on the European Norm (EN) 16931. It may be issued either as a standalone UBL invoice or as a hybrid PDF file.
The mandate has been deployed progressively since December 2021 with a first phase that was focusing on electronic invoice issuance.
We are now in the second phase of the mandate, where tax data transmission to ZATCA becomes mandatory. This second phase is implemented in multiple waves [↗︎], the first of which began on January 1, 2023, initially applying to companies with annual turnover exceeding SAR 3 billion (~685 M€).
Since then, the eligibility thresholds have gradually been reduced. The rollout has now reached wave 23 [↗︎], with wave 24 already scheduled [↗︎], and additional waves to be officially announced in the future.
The current implementation timeline is as follows:
- Wave 23 (since March 31, 2026): clearance mandatory for B2B and B2G transactions for companies with annual turnover above SAR 750K (~170 K€)
- Wave 24 (from June 30, 2026): clearance mandatory for B2B and B2G transactions for companies with annual turnover above SAR 375K (~85 K€)
Invoices must be archived for 7 years in accordance with regulatory requirements.
B2C E-Reporting
The B2C requirements in Saudi Arabia follow the same general compliance framework as B2B and B2G obligations, but differ in the timing and sequencing of data transmission to the tax authority.
B2C transactions rely on “simplified tax invoices“, which are more time-sensitive than B2B or B2G transactions, and cannot be delayed by a real-time clearance process. To address this constraint, the B2C model is implemented as an e-reporting regime rather than a clearance mechanism.
In practice, the invoice issuer must generate a B2C simplified tax invoice containing a QR code and digital signature, and provide a printed version directly to the customer, without prior validation by the Zakat, Tax and Customs Authority (ZATCA).
The transaction must then be electronically reported to the Fatoora central platform within 24 hours, ensuring near-real-time visibility for the tax authority while preserving operational speed at the point of sale.
The B2C obligations are being rolled out in parallel with the B2B and B2G clearance phases, following the same wave-based implementation [↗︎] structure:
- Wave 23 (since March 31, 2026): e-reporting mandatory for B2C transactions for companies with annual turnover above SAR 750K (~170 K€)
- Wave 24 (from June 30, 2026): e-reporting mandatory for B2C transactions for companies with annual turnover above SAR 375K (~85 K€)
Invoices must be archived for 7 years in accordance with regulatory requirements.
Timeline
ZATCA mandate phase 1
E-invoice issuance becomes mandatory for B2G, B2B and B2C transactions
ZATCA mandate phase 2
B2G & B2B e-invoicing clearance, as well as B2C e-reporting start becoming mandatory, based on company size
Wave 23 (turnover > SAR 750K)
B2G & B2B e-invoicing clearance, along with B2C e-reporting mandatory for companies with annual turnover above SAR 750K (~170 K€)
Wave 24 (turnover > SAR 375K)
B2G & B2B e-invoicing clearance, along with B2C e-reporting mandatory for companies with annual turnover above SAR 375K (~85 K€)
End of the "Exemption of Fines" initiative
End of the financial penalties waiver for companies currently implementing the mandate
Technical Details
Invoice formats
Since Phase 1 of the ZATCA mandate, which came into force in December 2021 in Saudi Arabia, all invoices must be issued in electronic format.
More specifically, they must comply with UBL 2.1, aligned with the European standard EN 16931, and supplemented by additional local validation rules and technical extensions defined in the official invoice specifications [↗︎].
For B2G & B2B transactions, invoices may be issued as:
- Standalone UBL XML files
- Hybrid PDF (PDF/A-3) documents combining a human-readable PDF with the embedded UBL invoice attached.
For B2C transactions:
- Invoices must be issued exclusively in the hybrid PDF (PDF/A-3) format
- The PDF must include a QR code
- The same QR code must also be encoded within the embedded UBL file
E-invoicing central platform
Under Saudi Arabia’s e-invoicing mandate, invoices must be submitted in electronic format to the Fatoora central platform [↗︎], which is operated by ZATCA. The timing of submission depends on the transaction type.
For B2G and B2B invoices, it’s a clearance model and the electronic invoice must be submitted to Fatoora before it is delivered to the recipient:
- The invoice is issued in electronic format by the seller
- The UBL is sent to Fatoora and validated (“cleared”) by ZATCA, that applies a cryptographic stamp (including a QR code encoded in the XML)
- Once cleared, the invoice is returned to the seller, who is then responsible for delivering it to the buyer, either directly as the UBL file, or as a hybrid PDF that includes the QR code in the readable version of the invoice
For B2C invoices, it’s a e-reporting model, and the electronic invoice must be submitted to Fatoora after it is delivered to the customer:
- The invoice or the cash receipt is issued in electronic format by the seller
- A printed version must be provided to the buyer, unless the parties agree to exchange the invoice in PDF or another electronic format.
- The seller must then report the transaction electronically to Fatoora.
Invoice submission to Fatoora can be performed either automatically via an API or manually through the dedicated web portal.
Proofs of invoice validation
In Saudi Arabia, all electronic invoices include a proof of validation known as a cryptographic stamp, which enables the buyer to verify that the invoice has been properly cleared (for B2B and B2G transactions) or reported (for B2C transactions) to ZATCA.
For B2G and B2B invoices, the issuer generates the electronic invoice, after which the cryptographic stamp is applied by ZATCA through the Fatoora platform as part of the clearance process.
For B2C invoices, the cryptographic stamp is applied directly by the invoice issuer.
This cryptographic stamp consists of a QR code encoded within the UBL file and a digital signature that seals the electronic invoice. When invoices are issued in hybrid PDF format (PDF/A-3), the issuer must also ensure that the QR code is visibly embedded in the human-readable version of the invoice.
In addition, the cryptographic stamp relies on hashing and chaining mechanisms, meaning that each invoice contains a digital fingerprint of the previous one. This creates a continuous and tamper-resistant audit trail, strengthening traceability and integrity across invoice sequences.
These requirements are defined in detail in the security features implementation standards [↗︎] published by ZATCA.
Service providers qualification
Service providers can pass a qualification process from ZATCA and be listed in the official Solution Providers Directory [↗︎].
However, this qualification is not mandatory. It primarily serves as a recognition mechanism rather than a compliance requirement.
Service providers may offer e-invoicing solutions in Saudi Arabia as long as their solutions comply with ZATCA’s technical and regulatory requirements, even if they are not officially qualified or listed in the directory.
Exemption of Fines initiative
On January 1, 2026, the ZATCA extended its financial penalties waiver initiative [↗︎] until June 30, 2026 in Saudi Arabia.
The measure provides temporary relief from certain penalties related to VAT and e-invoicing compliance, including late registration, late filing, and delays linked to technical integration, provided taxpayers regularize their situation and settle any outstanding principal tax liabilities.
The waiver does not apply to penalties related to tax evasion or to penalties that were already paid before the initiative took effect. It is intended to support companies as they complete their onboarding to the phased rollout of the national clearance-based e-invoicing system.
ZATCA Mandate Schemas
B2G & B2B e-invoicing clearance model
The B2G and B2B e-invoicing obligation in Saudi Arabia follows a clearance model, meaning that invoices must be validated by the tax authority before they can be delivered to the final recipient.
In practice, the issuer first generates the invoice in electronic format and submits it to the Fatoora platform. The platform automatically reviews and validates the invoice (“clears” it) on behalf of ZATCA and applies a cryptographic stamp as proof of validation. Once this clearance step is completed, the issuer is responsible for transmitting the validated invoice to the buyer.
B2C e-reporting model
In Saudi Arabia, B2C invoices and cash receipts are generated with a QR code and a cryptographic stamp and delivered directly to the buyer.
Following this real-time issuance step that may happen directly at the point of sale, the electronic invoice must then be submitted to the Fatoora platform within a maximum of 24 hours so that it can be reported to ZATCA.
The Invoicing Hub Word
Saudi Arabia
Saudi Arabia has taken a highly pragmatic and progressively staged approach to e-invoicing, rolling out requirements incrementally to allow businesses sufficient time to adjust.
A central feature of this design is the adoption of two distinct operational models: a clearance mechanism for B2G & B2B transactions, and a e-reporting model for B2C operations. This separation reflects a deliberate adaptation to real-world constraints, especially in retail environments where invoicing must remain near-instantaneous.
The rollout has been organized across multiple phases and waves, and supported by a fines exemption initiative that temporarily suspended penalties for companies delayed in implementing the required technical solutions.
The initial phase concentrated on the introduction of electronic invoicing, with an emphasis on digitization and automation benefits for businesses. The subsequent phase shifted toward enhanced tax reporting capabilities aimed at strengthening administrative oversight. This progression illustrates an effort by the tax authority to reconcile regulatory objectives with operational feasibility while improving system-wide efficiency.
The Saudi rollout is also characterized by an unusually high number of implementation waves, currently reaching waves 23 and 24 (!). This level of granularity is unseen in other jurisdictions, where deployment is generally structured around a small set of deadlines (typically: 1 to maximum 4) based on company size.
While further waves are expected to progressively bring smaller businesses into scope, the majority of the economy is already covered, and the mandate is now broadly in full effect.
Additional Resources [↗︎]
Tax authority supervising e-invoicing in Saudi Arabia
Official e-invoicing mandate homepage, guidelines and resources
Comprehensive FAQ compiled by ZATCA about the mandates
Official list of service providers certified by ZATCA (certification is not mandatory)
Technical specifications of the UBL 2.1 invoice format used in Saudi Arabia
ZATCA e-invoicing platform used for B2B & B2G invoice clearance, and for B2C e-reporting
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