🧾 Frequently Asked Questions (FAQs) – e-Invoicing Phase 2 in Saudi Arabia
1. What is e-Invoicing Phase 2 in Saudi Arabia?
e-Invoicing Phase 2, also known as the Integration Phase, requires businesses to integrate their invoicing systems with ZATCA’s platform to issue electronic invoices in real time. This phase includes technical requirements for invoice formats, reporting, and system connectivity.
2. When did Phase 2 of e-Invoicing start?
Phase 2 began in January 2023 and is being rolled out in waves based on taxpayer revenue thresholds. ZATCA notifies eligible businesses individually about their enforcement dates.
3. Who is required to comply with Phase 2?
All VAT-registered businesses in Saudi Arabia are required to comply. ZATCA is enforcing Phase 2 in batches, starting with larger taxpayers and gradually including smaller entities.
4. What are the technical requirements for Phase 2?
Businesses must ensure their ERP, POS, or billing system can:
-
Generate e-invoices in XML format (with embedded PDF A/3).
-
Digitally sign invoices.
-
Connect and integrate with ZATCA’s API.
-
Generate UUIDs, hash, and QR codes.
-
Support real-time or near-real-time invoice clearance.
5. What is the difference between Phase 1 and Phase 2?
-
Phase 1 (December 2021): Only required storing and issuing invoices electronically.
-
Phase 2: Requires full integration with ZATCA’s platform, technical controls, and real-time reporting of invoices.
6. What types of invoices must be integrated with ZATCA in Phase 2?
-
Standard Tax Invoices (for B2B transactions).
-
Simplified Tax Invoices (for B2C transactions).
-
Credit and Debit Notes related to both invoice types.
7. How do I prepare my business for e-Invoicing Phase 2?
-
Assess your current ERP or POS system.
-
Choose a ZATCA-compliant solution provider.
-
Perform integration with ZATCA’s Fatoora Portal.
-
Test and validate your invoice format and digital signature.
-
Train your staff and update internal processes.
8. What happens if I don’t comply with Phase 2 requirements?
Non-compliance can result in penalties, legal action, or suspension of VAT privileges. ZATCA actively monitors and audits invoices, so timely compliance is critical.
9. Can EIBSOL help my company integrate with ZATCA?
Yes! At EIBSOL, we offer ZATCA Phase 2-ready ERP & e-invoicing solutions. Our system ensures:
-
Seamless API integration.
-
Real-time invoice generation.
-
Arabic/English support.
-
Complete onboarding and training.
10. Is ZATCA certification required for the solution?
Yes, the invoicing system must be ZATCA-approved and meet all security, encryption, and data structure standards.