Saudi Arabia
ZATCA Phase 2 (Fatoora) e-invoicing compliance in Saudi Arabia
POSMena is built to ZATCA Phase 2 (Fatoora) Integration Phase technical specifications for Saudi Arabia. The platform issues Tax Invoices and Simplified Tax Invoices in Arabic and English, with UBL 2.1 XML, cryptographic stamp, hash chaining and TLV-encoded QR.
Hero — ZATCA Phase 2 (Fatoora) e-invoicing, ready for KSA
POSMena is aligned to ZATCA Phase 2 (Fatoora) — the Integration Phase of the E-Invoicing Regulation issued by the Zakat, Tax and Customs Authority (ZATCA). The platform supports clearance of B2B and B2G Tax Invoices and reporting of B2C Simplified Tax Invoices to the Fatoora platform, with Arabic-first mandatory fields, UBL 2.1 XML, UUID, hash chaining, cryptographic stamp and embedded QR.
- Regulator: ZATCA (Zakat, Tax and Customs Authority), under the Ministry of Finance.
- Scope: VAT-registered resident taxable persons in KSA, plus third parties issuing tax invoices on their behalf.
- Document types: Tax Invoice (B2B/B2G) and Simplified Tax Invoice (B2C).
- Language: Arabic mandatory for required fields; Arabic + English bilingual issuance supported.
- Currency: SAR. Country: Saudi Arabia.
What's required — and by when
ZATCA enforces Phase 2 of Fatoora in waves announced by VAT-registered revenue threshold. Each wave specifies an effective date by which in-scope taxpayers must integrate their e-invoicing solution with the Fatoora platform. The current wave number, threshold and effective date should be confirmed on ZATCA's portal before onboarding.
- Phase 1 — Generation (in force since December 2021): structured e-invoice generation and storage with QR for Simplified Tax Invoices.
- Phase 2 — Integration (rolled out in waves from January 2023): live integration with the Fatoora platform.
- Clearance model: B2B and B2G Tax Invoices must be cleared by ZATCA in real time before being shared with the buyer.
- Reporting model: B2C Simplified Tax Invoices are issued, then reported to ZATCA within 24 hours.
- Waves are announced by VAT-registered revenue threshold; thresholds step down over subsequent waves.
- Retention period: e-invoices and associated notes retained for six years under KSA VAT law.
How POSMena handles ZATCA Phase 2 (Fatoora)
POSMena implements the technical specifications, controls and procedural rules published under the E-Invoicing Regulation. The flow covers onboarding, generation, cryptographic sealing, clearance or reporting, and archiving — for both Tax Invoices and Simplified Tax Invoices.
1.CSID onboarding
POSMena performs CSID (Cryptographic Stamp Identifier) onboarding with the Fatoora platform per taxpayer, including CSR submission, OTP-based device pairing and production CSID issuance.
2.UBL 2.1 XML generation
Each invoice is generated as a ZATCA-compliant UBL 2.1 XML document with the mandatory fields, including Arabic-language required fields, seller and buyer identifiers, VAT breakdown and UUID.
3.Cryptographic stamp and hash chain
POSMena applies the cryptographic stamp using the CSID and maintains the previous-invoice hash chain (PIH) as required by the Phase 2 specification.
4.QR code (TLV)
A TLV-encoded QR is embedded on the invoice per ZATCA's Phase 1 and Phase 2 QR specifications, with the Phase 2 fields populated for cleared and reported invoices.
5.Clearance and reporting
B2B/B2G Tax Invoices are submitted to the Fatoora platform for clearance before delivery to the buyer. B2C Simplified Tax Invoices are reported to ZATCA within the 24-hour window.
6.Archiving
Cleared and reported invoices, credit notes and debit notes are archived in the required format for the KSA VAT retention period of six years.
Compliance proofs
POSMena documents the compliance footprint at the taxpayer level — because ZATCA certifies the taxpayer's integration via CSID issuance, not vendors as a category. Customers receive the artifacts required for their internal audit and ZATCA review.
- CSID issuance flow walkthrough for the customer's tax registration.
- Sample cleared B2B Tax Invoice with ZATCA clearance response and signed XML.
- Sample reported B2C Simplified Tax Invoice with TLV QR and reporting acknowledgement.
- Fatoora portal integration screenshot for the customer's environment.
- Mapping of POSMena fields to the ZATCA Controls, Requirements, Technical Specifications and Procedural Rules.
Connected ERPs and POS channels in KSA
POSMena connects upstream ERPs and downstream point-of-sale channels so that Tax Invoices and Simplified Tax Invoices flow into Fatoora without duplicate data entry. The same compliance layer covers all connected sources.
- SAP (S/4HANA and ECC).
- Oracle NetSuite.
- Microsoft Dynamics 365.
- Odoo.
- Zoho.
- POS connectors used by retail, F&B and services operators in KSA.
Talk to POSMena about ZATCA Phase 2 (Fatoora)
Book a demo or speak with the Arabic-language sales team to scope ZATCA compliant invoicing software for KSA across your ERPs, branches and POS channels.
- WhatsApp the KSA team on a Saudi number.
- Book a Fatoora integration demo with a POSMena specialist.
- Request Arabic-language sales contact and onboarding documentation.
- Receive a CSID onboarding plan aligned to your current wave.
Frequently asked
What is ZATCA Phase 2 (Fatoora) and who must comply?
ZATCA Phase 2 (Fatoora) is the Integration Phase of the E-Invoicing Regulation issued by the Zakat, Tax and Customs Authority (ZATCA). It applies to all VAT-registered resident taxable persons in Saudi Arabia, plus third parties issuing tax invoices on their behalf. Non-residents are out of scope. In-scope taxpayers must integrate their e-invoicing solution with the Fatoora platform by the effective date of the wave they are assigned to.
What is the difference between a Tax Invoice and a Simplified Tax Invoice under ZATCA?
A Tax Invoice is used for B2B and B2G transactions and must be cleared by ZATCA in real time on the Fatoora platform before being shared with the buyer. A Simplified Tax Invoice is used for B2C transactions; it is issued to the customer first, then reported to ZATCA within 24 hours. Both document types must follow the UBL 2.1 XML specification and carry the TLV-encoded QR required by ZATCA.
How does clearance differ from reporting under ZATCA Phase 2 (Fatoora)?
Clearance is a synchronous model: B2B and B2G Tax Invoices are submitted to the Fatoora platform and must receive a ZATCA clearance response before the invoice is delivered to the buyer. Reporting is asynchronous: B2C Simplified Tax Invoices are issued to the customer immediately and submitted to ZATCA within 24 hours. POSMena supports both flows from the same invoicing engine.
Are Arabic fields mandatory on ZATCA e-invoices?
Yes. ZATCA requires the mandatory invoice fields to be present in Arabic. Bilingual Arabic and English invoices are permitted and common, but Arabic cannot be omitted from the required fields. POSMena issues invoices in Arabic and English, with the mandatory fields populated in Arabic as required by ZATCA.
How long must ZATCA e-invoices be retained?
Under KSA VAT law, e-invoices and associated credit and debit notes must currently be retained for six years. POSMena archives cleared Tax Invoices, reported Simplified Tax Invoices and related notes in the format and for the retention period required by ZATCA and the VAT law.