Fatoora
Simplified Guide
E-invoicing Requirements
Version 1
29 - JUNE - 2022
Content
Introduction 03
Key definitions to know 04
E-invoicing general overview 06
How to comply with e-invoicing requirements? 07
E-invoicing process for Phase One 08
E-invoicing process for Phase Two 10
QR code components 15
How to scan QR Code? 16
Most important things to avoid in e-invoicing 17
How to prepare for e-invoicing? 19
How to onboard an e-invoicing solution through “Fatoora” portal? 20
Examples of prohibited functionalities for e-invoicing 21
Contact us 22
2
Introduction
The Zakat, Tax and Customs Authority is implementing the second phase (Integration Phase) of
e-invoicing starting from January 1, 2023, enforced in waves by targeted taxpayer groups. During
this phase, taxpayers who are subject to the e-invoicing regulation must comply with all the
requirements and integrate with ZATCA’s system.
On December 4, 2021, the first phase (Generation phase) was implemented, which required
taxpayers subject to the e-invoicing regulation to generate and keep tax invoices or debit and credit
notes, using electronic systems compatible with e-invoicing requirements.
This guide aims to provide the taxpayers a non-technical overview of the E-invoicing
implementation in the Kingdom of Saudi Arabia and its requirements to facilitate their readiness for
first and second phase.
Illustrative example of E-invoicing solution
3
Key definitions to know
E-invoicing
Electronic procedure that aims to convert the issuing of paper invoices and notes into
electronic process that allows the exchange and processing of invoices, credit and debit notes
in a structured format between the buyer and seller through an integrated electronic solutions.
E-invoicing solutions
Online cash register, virtual cash register on tablets, e-invoicing software installed on a PC,
e-invoicing software installed on phone or tablet and cloud-based solutions are examples of
e-invoicing solutions.
E-invoice
An invoice that is generated in a structured electronic format through electronic means. A paper
invoice that converted into an electronic format through coping, scanning, or any other method
is not considered an electronic invoice.
4
QR-CODE
A type of matrix barcode, with a pattern of black and white squares that is machine readable by
a QR code scanner or the camera of smart devices through the VAT app in order to enable basic
validation of electronic invoices and electronic notes.
Tax Invoice
An invoice that is usually issued by a Business to another Business (B2B), containing all tax
invoice elements.
Simplified Tax Invoice
An invoice that is usually issued by a Business to Consumer (B2C) containing all simplified tax
invoice elements.
Integration
Integrating the taxpayer’s e-invoicing solution with ZATCA’s system (“Fatoora” portal) aiming
to share the invoices.
5
E-invoicing general overview
December 4, 2020
Publication of the E-Invoicing Regulations
May 28, 2021
Publication of the E-Invoicing Resolution
Phase One (Generation phase) December 4, 2021
Taxpayers are required to generate and keep the compliant tax invoices
and notes using compliant e-invoicing solutions
Phase Two (Integration phase) January 1, 2023
Taxpayers are required to integrate their e-invoicing
solutions with ZATCA in waves by targeted taxpayer
groups, where they will be notified by ZATCA on the
date of their integration at least 6 months in advance
6 To watch the video, click here
How to comply with e-invoicing requirements?
Generate and store e-invoices Use compliant e-invoicing solution
Ensure all Phase One required additional fields are fulfilled
Phase one (Generation Phase)
Integrate the e-invoicing solution with Ensure e-invoicing solution has the ability to
«Fatoora» Portal connect to the internet
Generate and store e-invoices following Ensure all Phase Two required additional fields
the specified format (XML or PDF/A-3 with are fulfilled
embedded XML)
To learn more about the Tax Invoice additional To learn more about the Simplified Tax Invoice
fields click here additional fields click here
7
E-invoicing process
for Phase One
8
E-invoicing process for Phase One
Seller generates the e-invoice
Seller stores the e-invoice on e-invoicing solution
Seller shares the e-invoice with the buyer
Buyer can scan the QR Code through VAT app*
9
E-invoicing process
for Phase Two
10
E-Invoicing Process for Phase Two
Simplified Tax Invoice
Seller generates the e-invoice which includes all the
mandated fields
Seller shares the e-invoice with the buyer
Seller stores the e-invoice on e-invoicing solution
Seller reports the e-invoice to ZATCA within a maxi-
mum duration of 24 hours through integrated e-invoic-
ing solution with “Fatoora” portal
Buyer can scan the QR Code through VAT app*
11
Simplified Tax Invoice Example
Always include all mandatory fields and items for electronic invoice
Additional Phase 2 requirements for Simplified Additional Phase 1 requirements for Simplified
Tax Invoices that are usually issued by a Tax Invoices that are usually issued by a
Business to Consumer (B2C) Business to Consumer (B2C)
12
E-Invoicing Process for Phase Two
Tax Invoice Process
Seller generates the e-invoice which includes all the
mandated fields
Seller shares the e-invoice with ZATCA through their
integrated e-invoicing solution, then it gets cleared from
ZATCA and sent back to the taxpayer after the clearance
Seller shares the cleared e-invoice with the buyer
Seller stores the e-invoice on e-invoicing solution
4
Buyer can scan the QR Code through VAT app*
13
Tax Invoice Example
Always include all mandatory fields and items for electronic invoice
Additional Phase 2 requirements for Tax Additional Phase 1 requirements for Tax
Invoices that are usually issued by a Business Invoices that are usually issued by a Business
to another Business (B2B) to another Business (B2B)
14
QR code components
Illustrative example
Seller’s name
VAT registration number of the seller
Date and time of invoice/note
VAT amount
Total amount (with VAT) of invoice/note
The structure for building the QR code should follow the e-in-
voicing resolution
15
How to scan QR code?
The following information will be shown once the QR
code is scanned using VAT app
Buyer can scan the QR Code through VAT app*
16
Most important things to avoid in e-invoicing
Phase one (Generation Phase)
1 2
Generating manual / handwritten Generating invoices that do
invoices not fulfill the e-invoicing
requirements
3 4
Using an e-invoicing solution that Deleting e-invoices
is not compliant with the e-in- after generating them
voicing requirements
Phase Two (Integration Phase)
5
Generating e-invoices using an e-invoicing solution
which is not integrated with ZATCA
17
Check the guide on debit and
credit notes (Link)
18
How to prepare for e-invoicing?
Visit e-invoicing website through Understand the e-invoice
ZATCA.GOV.SA
fields
Acquire or upgrade to a Test the generation of e-invoices
compliant e-invoicing prior to the enforcement date
solution
Ensure the readiness of your employees to use the
e-invoicing solution
See the list of technology solutions providers*
Press here
19
How to onboard an e-invoicing solution through
“Fatoora” portal?
Taxpayer gets notified
ZATCA notifies the taxpayer on their specific integration wave
2 3 4
Login to the “Fatoora” Click on Click on “onboard a
portal (ERAD) “Fatoora” portal device”
5 6 7
Start generating e-invoices
Generate the OTP Enter the OTP within your
After onboarding, the
(one time password) e-invoicing solution
taxpayer can start generating
e-invoices
20
Examples of prohibited functionalities for
e-invoicing
Phase one (Generation Phase)
Lack of user management Tampering of the e-invoices or
feature notes and records
Ability to create multiple
e-invoices sequence
Phase Two (Integration Phase)
Export of cryptographic stamp Date and time change of the
private key e-invoicing solution
*For more information about the prohibited specifications and functional characteristics, please see the
controls and requirements for implementing the provisions of the electronic billing regulation.
Press here
21
For more support on e-invoicing, contact us
through our official channels
Call Center (19993)
Twitter @zatca_sa
Live Chats
zatca.gov.sa
Email ([email protected])
22
External
دنتسمDocument
يجراخ
This guide has been prepared for educational and awareness purposes
only, its content may be modified at any time. It is not considered in any way
binding to ZATCA and is not considered in any way a legal consultation. It
cannot be relied upon as a legal reference in and of itself, It is always neces-
sary to refer to the applicable regulations in this regard. Every person sub-
ject to zakat, tax and customs laws must check his duties and obligations,
he is solely responsible for compliance with these regulations. ZATCA shall
not be responsible in any way for any damage or loss The taxpayer is ex-
posed to that results from non-compliance with the applicable regulations.
