ZATCA Phase 1 & 2 Ready · E-Invoicing Software in Saudi Arabia
Simplify E-Invoicing in Saudi Arabia with Bytize
Bytize is ZATCA Phase 1 and Phase 2 ready. Generate compliant invoices with QR codes, UUIDs, and cryptographic stamps, and integrate with FATOORA from SAP, Microsoft Dynamics, Salesforce, or the PosBytz POS.
Wave 25: Businesses with VAT-subject revenue above SAR 187,500 in 2022, 2023, 2024, or 2025 must integrate with FATOORA by 1 February 2027.
What is E-Invoicing in Saudi Arabia?
E-Invoicing in Saudi Arabia is governed by ZATCA's FATOORA programme: VAT-registered businesses must issue tax invoices, as well as credit and debit notes, as structured electronic documents. Phase 1 (Generation) has been mandatory since 4 December 2021. Phase 2 (Integration) connects your invoicing system directly to ZATCA's FATOORA platform and is being rolled out in waves.
Handwritten invoices and invoices typed in text editors or spreadsheets are non-compliant. Under Phase 2, standard tax invoices (B2B) must be cleared by ZATCA before being shared with buyers, while simplified tax invoices (B2C) must be reported to ZATCA within 24 hours.
E-invoice requirements in Saudi Arabia
- Format: XML in UBL 2.1, or PDF/A-3 with embedded XML, complying with ZATCA's e-invoicing specifications
- Clearance: Standard tax invoices are transmitted to FATOORA and cleared before reaching the buyer
- Reporting: Simplified tax invoices are reported to FATOORA within 24 hours of issue
- Security: Each invoice includes a UUID, an invoice hash, and a cryptographic stamp; simplified invoices must display a QR code
- Language: Invoices must be issued in Arabic; additional languages may be included alongside Arabic
Who must comply
- All VAT-registered taxpayers resident in Saudi Arabia must comply with Phase 1.
- Phase 2 is rolled out in waves based on VAT-subject revenue; ZATCA notifies each targeted taxpayer directly.
- Covers standard and simplified tax invoices, as well as their associated credit and debit notes.
- Non-resident taxpayers are exempt from Saudi e-invoicing requirements.
E-Invoicing in Saudi Arabia: timeline and deadlines
Phase 1 applies to all VAT-registered businesses; your Phase 2 compliance date depends on the specific wave assigned to you by ZATCA.
4 Dec 2021
All VAT-registered resident taxpayers
Phase 1: generate and store e-invoices
1 Jan 2023
Wave 1: VAT-subject revenue above SAR 3 billion in 2021
Phase 2 integration begins
31 Mar 2026
Wave 23: revenue above SAR 750,000 in 2022, 2023 or 2024
Integration deadline (passed)
30 Jun 2026
Wave 24: revenue above SAR 375,000 in 2022, 2023 or 2024
Integration deadline (passed)
1 Feb 2027
Wave 25: revenue above SAR 187,500 from 2022 to 2025
Integration deadline
ZATCA announced Wave 25 on 24 July 2026. One year above the threshold is enough to be in scope.
How E-Invoicing in Saudi Arabia works with Bytize
Saudi Arabia enforces a clearance model: ZATCA validates standard invoices before they reach the buyer and must receive simplified invoices within 24 hours of issuance.
Onboard with ZATCA
Bytize registers your invoicing units with FATOORA using a one-time password (OTP) from the FATOORA portal to obtain each unit's Cryptographic Stamp Identifier (CSID).
Send invoice data
Your ERP or POS sends invoice data to Bytize.
Generate and stamp
Bytize generates the UBL 2.1 XML, attaches the UUID, invoice hash, cryptographic stamp, and QR code, and validates the file against ZATCA rules.
Clear standard invoices
Standard tax invoices are sent to FATOORA for clearance. ZATCA validates and returns the cleared invoice, which you then deliver to your buyer.
Report simplified invoices
Simplified tax invoices are issued to your customer immediately and reported to FATOORA within 24 hours.
Track and archive
Every ZATCA response is returned to your system, and invoices are securely archived for audit compliance.
ZATCA e-invoicing software in Saudi Arabia, built for your business
Bytize covers both ZATCA phases from one platform, whether you invoice from an ERP or a POS.
Phase 1 and Phase 2 ready
Generate compliant invoices today and integrate with FATOORA when your wave arrives, without changing systems.
QR codes and UUIDs
ZATCA-specified QR codes and UUIDs are generated on every invoice automatically.
Cryptographic stamps
Each invoice is stamped so its authenticity can be verified and any tampering detected.
Validation before submission
Invoices are checked against ZATCA rules, and missing fields are flagged before anything is sent.
Arabic and English invoices
Every invoice is bilingual, with a full Arabic (RTL) interface on the POS.
Every transaction type
Sales, returns and refunds, and voids, all compliant from day one.
Free tier for small businesses
Start on PosBytz for free with QR code invoices in Arabic and English, and upgrade later without losing data.
Benefits of E-Invoicing in Saudi Arabia
While e-invoicing is a legal requirement, a proper setup speeds up payments and eliminates manual effort for your finance team. Here is how Bytize transforms your invoicing workflow:
Stay compliant without extra work
Invoices are generated, stamped and cleared to ZATCA's specification, so you meet your wave deadline by default.
Get paid faster
Buyers receive invoices already cleared by ZATCA, so there’s less back-and-forth over invalid VAT invoices and approval starts sooner.
Fewer errors and rejections
Every invoice is validated against official rules before submission, ensuring missing fields and incorrect tax codes are corrected prior to delivery.
No more manual data entry
Invoices flow from your ERP or POS straight to FATOORA, so your team stops re-keying or re-issuing invoices.
Audit-ready records
Every invoice and status message is maintained in a tamper-evident archive, ready for export and retrieval during tax authority audits.
Grow without switching
Start on the free tier, move to full Phase 2 integration, and add Peppol e-invoicing for other markets on the same platform as you expand.
E-invoicing software in Saudi Arabia that connects to your ERP
Bytize seamlessly connects your ERP, POS, or accounting software to FATOORA, allowing your team to maintain its existing invoicing workflows.
SAP
ERP
Microsoft Dynamics
ERP
Salesforce
CRM and billing
Any system
Through the Bytize API (XML and PDF)
Custom ERP
Penalties for non-compliance with E-Invoicing in Saudi Arabia
ZATCA usually starts with a warning, but repeated e-invoicing violations draw escalating fines of up to SAR 50,000.
| Violation | Penalty |
|---|---|
| First violation (e.g., failing to issue an e-invoice, missing QR code, or altering an invoice post-issuance) | Written warning |
| Repeated violations | Escalating fines per violation, up to SAR 50,000 |
| Not integrating with FATOORA by your wave deadline | Treated as an e-invoicing violation; fines up to SAR 50,000 |
Why choose Bytize for E-Invoicing in Saudi Arabia
Bytize runs ZATCA e-invoicing in production across Saudi Arabia.
ERP and POS in one
Integrate with SAP, Microsoft Dynamics, or Salesforce, or issue invoices directly from PosBytz POS across Windows, Android, and iPad.
Free tier for small businesses
Get compliant with no upfront cost and no credit card.
Built for Arabic
Bilingual invoices and a full Arabic POS interface.
Ready for the rest of the GCC
The same team runs JoFotara reporting in Jordan and Peppol e-invoicing across six markets.
E-Invoicing in Saudi Arabia: frequently asked questions
Get ready for E-Invoicing in Saudi Arabia before your wave deadline
Tell us your wave and your ERP or POS. We'll confirm your deadline, show how Bytize connects to FATOORA and plan your go-live.