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ZATCA Compliance

What is ZATCA E-Invoicing?

📅 June 2, 2026 ⏱ 5 min read 🏷 E-Invoicing · Saudi Arabia · VAT

Saudi Arabia's e-invoicing mandate — known as Fatoora — requires every VAT-registered business to issue, store, and report invoices electronically. It is managed by the Zakat, Tax and Customs Authority (ZATCA) and is one of the most comprehensive digital invoicing frameworks in the Middle East.

What is ZATCA E-Invoicing?

E-invoicing replaces paper and PDF invoices with structured XML files that carry a cryptographic stamp and QR code. These files are generated by a ZATCA-approved solution like Bluxy and submitted to ZATCA's central platform FATOORA for clearance or reporting.

Who Must Comply?

All VAT-registered businesses in Saudi Arabia must comply, including:

  • 🏪 Retailers and wholesalers
  • 🏥 Healthcare providers, clinics, and pharmacies
  • 🏗 Construction and contracting companies
  • 🍽 Restaurants and hospitality businesses
  • 💼 Professional service firms — legal, consulting, IT
  • 🏭 Manufacturers and importers

Phase 1 vs Phase 2

1
Generation Phase

Active since December 4, 2021. Generate and store e-invoices with a QR code using compliant software. No real-time ZATCA connection required.

2
Integration Phase

Rolling out from January 2023. Direct integration with FATOORA required. B2B invoices need real-time clearance; B2C invoices must be reported within 24 hours.

Tax Invoice vs Simplified Invoice

  • Tax Invoice (فاتورة ضريبية) — for B2B transactions. Requires the buyer's VAT number and must be cleared by ZATCA before delivery.
  • Simplified Invoice (فاتورة مبسّطة) — for B2C transactions. Must include a QR code and be reported to ZATCA within 24 hours.

Mandatory Invoice Fields

  • Seller name, address, and VAT registration number
  • Invoice number and date
  • Description, quantity, and unit price of goods or services
  • VAT amount at 15% (or applicable zero-rate / exemption)
  • Total amount inclusive of VAT
  • Cryptographic stamp — UUID and hash
  • QR code

Penalties for Non-Compliance

Fines start at SAR 1,000 and escalate with repeated violations. Failure to clear B2B invoices before sharing them with buyers, or missing B2C reporting deadlines, can also result in suspension of the business license.

How Bluxy Keeps You Compliant

  • ✅ XML generation in ZATCA-mandated UBL 2.1 format
  • ✅ Cryptographic stamping and UUID per invoice
  • ✅ QR code generation for all simplified invoices
  • ✅ Real-time FATOORA clearance for B2B invoices
  • ✅ Automated 24-hour reporting for B2C invoices
  • ✅ Bilingual invoices — Arabic and English
  • ✅ Automatic 15% VAT with zero-rated and exempt support