What did ZATCA Phase 1 require for Saudi e-invoicing?
Effective: 2021-12-04 · Authority: ZATCA (Zakat, Tax and Customs Authority)
ZATCA Phase 1 (Generation Phase), effective December 2021, required all VAT-registered businesses in Saudi Arabia to generate and store e-invoices in structured XML format using compliant billing systems. Phase 1 did not require integration with the FATOORA clearance portal but established the technical foundation for Phase 2.
What technical requirements did Phase 1 introduce?
Phase 1 required businesses to use compliant e-invoicing solutions that generate invoices in UBL 2.1 XML or PDF/A-3 with embedded XML. All invoices must include a QR code (containing seller name, VAT number, invoice date, total, and VAT amount) and must be stored in compliant systems. Anti-tampering measures were required.
Frequently Asked Questions
- Do businesses still need Phase 1 compliant systems after Phase 2?
- Yes. Phase 2 builds on Phase 1. Businesses must maintain Phase 1 compliance (local generation and storage) while also integrating with the FATOORA clearance portal for Phase 2. Both sets of requirements remain active simultaneously.
- What is the QR code requirement in Saudi e-invoices?
- Saudi e-invoices must include a QR code encoded with TLV (Tag-Length-Value) format containing six fields: seller name, VAT registration number, invoice timestamp, invoice total, VAT amount, and invoice hash. The QR code allows consumers and auditors to verify invoice authenticity.
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