What Is E-Invoicing in Saudi Arabia? A Complete Guide

E-invoicing means issuing and storing invoices in a structured digital format instead of paper. It is mandatory in Saudi Arabia for all VAT-registered businesses under the regulations of the Zakat, Tax and Customs Authority (ZATCA).

The two phases of e-invoicing

Phase 1 (the Generation Phase) started on 4 December 2021 and requires businesses to issue invoices electronically through a compliant system, with a QR code on simplified tax invoices, and prohibits handwritten or text-editor invoices.

Phase 2 (the Integration Phase) began in January 2023 in waves based on business revenue, and requires integrating your invoicing system directly with ZATCA's Fatoora platform — tax invoices are cleared before sharing with the customer, and simplified invoices are reported within 24 hours.

Types of e-invoices

• Tax invoice: for B2B transactions, including full tax details of both parties.
• Simplified tax invoice: for retail (B2C) customers, with a mandatory QR code.
• Credit and debit notes: for adjusting or cancelling earlier invoices with clear references.

What does your business need to comply?

A compliant invoicing system that issues invoices with all mandatory fields and integrates with the Fatoora platform in Phase 2. Mawrid's e-invoicing is accredited for both phases and issues invoices from a voice or written command, delivered digitally in seconds.

What happens if you don't comply?

ZATCA imposes penalties that start with a warning and escalate with repetition — from not issuing invoices electronically, to missing QR codes, to failing to integrate with Fatoora once your wave is called. Worse than the fine: a non-compliant invoice may be rejected by your business customers for input-tax deduction, costing you whole commercial relationships. Compliance through an accredited system is far cheaper and easier than fixing violations later.