Saudi Arabia is currently rolling out a mandate led by the Zakat, Tax and Customs Authority (ZATCA), and applying to all companies countrywide. The reform introduces a centralized e-invoicing compliance framework designed to improve transparency, standardize invoice formats, and enable near-real-time visibility of transaction data through the national platform Fatoora.
The first phase of the mandate introduced mandatory electronic invoice issuance using UBL 2.1 aligned with EN 16931, with invoices allowed either as standalone XML files or as hybrid PDF documents embedding structured data.
We are now in phase 2 of the mandate, which is being rolled out in multiple waves.
E-invoicing clearance for B2B & B2G, e-reporting for B2C
Under Phase 2 of the Saudi framework, B2B and B2G transactions must follow an e-invoicing clearance model. Companies must first submit invoices to the Fatoora central platform operated by ZATCA. The invoice is then validated by the tax authority and a cryptographic stamp is applied. ZATCA subsequently returns the cleared document to the issuer, who remains responsible for delivering it to the intended recipient.
B2C transactions follow a different approach as part of this phase 2 of the mandate, as they are more time-sensitive than B2B or B2G transactions and cannot be delayed by a real-time clearance process. Instead, ZATCA introduced an e-reporting model requiring businesses to issue simplified tax invoices with a QR code and cryptographic stamp directly to the customer, then report the transaction data electronically to the Fatoora central platform within 24 hours, ensuring near-real-time visibility while preserving operational speed.
Implementation timeline: a very progressive rollout
The mandate has been deployed progressively since December 2021 through a two-phase implementation strategy:
- Phase 1 introduced mandatory electronic invoice issuance.
- Phase 2, which began on January 1, 2023, introduced mandatory transmission of invoice data to ZATCA through the Fatoora central platform. This phase is being implemented through multiple rollout waves based on company turnover thresholds.
The rollout has now reached wave 23 (!), with additional waves continuing to extend the scope of the mandate:
- Wave 23 (fully in effect since March 31, 2026): clearance (B2B/B2G) and e-reporting (B2C) mandatory for companies with annual turnover above SAR 750K (~€170K)
- Wave 24 (deadline of application: June 30, 2026): clearance (B2B/B2G) and e-reporting (B2C) mandatory for companies with annual turnover above SAR 375K (~€85K)
Further waves are expected to be announced as Saudi Arabia continues expanding the mandate to smaller taxpayers nationwide.
Saudi Arabia Country Profile
The Invoicing Hub now covers a 29th country: Saudi Arabia, with regular e-invoicing news & a detailed Saudi Arabia Country Profile, featuring:
- Summaries of the obligations in Saudi Arabia
- Timeline of the main e-invoicing milestones
- Access to resources such as the technical documentations, FAQ, guidelines
- More detailed explanations on the e-invoicing clearance & e-reporting mandates
Visit The Invoicing Hub regularly to read the latest relevant news regarding e-invoicing in Saudi Arabia, and to remain updated about the latest developments.
