Saudi Arabia e-Invoicing Mandate
Clearance model · ZATCA FATOORA platform
E-invoicing is mandatory in Saudi Arabia for all resident VAT-registered businesses, with Phase 1 generation in force since 4 December 2021 and Phase 2 integration rolled out in waves that closed on 30 June 2026. Standard B2B and B2G invoices are cleared by ZATCA before issue; simplified B2C invoices are reported to FATOORA within 24 hours.
| Status | Live |
|---|---|
| Legal basis | E-Invoicing Regulation approved by ZATCA Board Resolution No. 2902 of 4 December 2020, issued under the VAT Law (Royal Decree No. M/113) and its Implementing Regulations; Resolution on the Controls, Requirements, Technical Specifications and Procedural Rules published on 28 May 2021, as subsequently amended. |
| Phase-in | 5 phases, 2021 to 2026 |
| Scope | B2G: Mandatory · B2B: Mandatory · B2C: Mandatory |
| Format | XML (UBL 2.1), PDF/A-3 with embedded XML · ZATCA e-invoice XML implementation standard (UBL 2.1 customisation) |
| Platform | FATOORA platform (API integration) · Clearance for standard tax invoices (B2B/B2G) / reporting within 24 hours for simplified invoices (B2C) |
| Penalties | Failure to issue and store e-invoices electronically: fine of SAR 5,000 to SAR 50,000 depending on severity and repetition. |
Phase-in timeline
2021 to 2027- 2021Phase 1 (generation) begins for all resident VAT-registered taxpayersno threshold; all resident taxable persons
- 2023Phase 2 (integration) Wave 1 taxpayers must connect to FATOORArevenue > SAR 3 billion in 2021
- 2024Wave 6 taxpayers must be integrated with FATOORA as successive wave notices step the threshold down through the mid-tierrevenue > SAR 70 million in 2021 or 2022
- 2026Wave 23 taxpayers must be integrated with FATOORAVAT-subject revenue > SAR 750,000 in 2022, 2023 or 2024
- 2026Wave 24 taxpayers must be integrated with FATOORA; the threshold reaches the mandatory VAT registration levelVAT-subject revenue > SAR 375,000 in 2022, 2023 or 2024Today
Mandate at a glance
Verified Jul 2026- B2G mandatory
- B2B mandatory
- B2C mandatory
- Non-residents: out of scope
- XML (UBL 2.1)
- PDF/A-3 with embedded XML
- ZATCA e-invoice XML implementation standard (UBL 2.1 customisation)
- FATOORA platform (API integration)
- Real-time clearance
- 6 years
- Digital signature: required
- Storage: Domestic
- Failure to issue and store e-invoices electronically: fine of SAR 5,000 to SAR 50,000 depending on severity and repetition.
- Missing or unreadable QR code and similar field or format breaches: progressive ladder starting with a warning and a correction period, then SAR 1,000, SAR 5,000 and SAR 10,000 for repeat breaches within a rolling 12 months, rising to SAR 40,000.
- Deleting or improperly amending issued e-invoices: SAR 10,000 to SAR 50,000; general VAT violations are capped at SAR 50,000 under Article 45 of the VAT Law.
Full technical breakdown: Saudi Arabia guide on e-Invoice.app
Is e-invoicing mandatory in Saudi Arabia?
Yes. E-invoicing in Saudi Arabia is mandatory for B2G, B2B, B2C transactions. Saudi Arabia operates a clearance model via FATOORA platform (API integration). Non-resident businesses are outside the scope of the mandate.
What are the Saudi Arabia e-invoicing deadlines?
All phases of the Saudi Arabia mandate are already in force; no further deadlines are currently scheduled.
| Date | Scope | Obligation | Threshold |
|---|---|---|---|
B2B B2G B2C | Phase 1 (generation) begins for all resident VAT-registered taxpayers | no threshold; all resident taxable persons | |
B2B B2G B2C | Phase 2 (integration) Wave 1 taxpayers must connect to FATOORA | revenue > SAR 3 billion in 2021 | |
B2B B2G B2C | Wave 6 taxpayers must be integrated with FATOORA as successive wave notices step the threshold down through the mid-tier | revenue > SAR 70 million in 2021 or 2022 | |
B2B B2G B2C | Wave 23 taxpayers must be integrated with FATOORA | VAT-subject revenue > SAR 750,000 in 2022, 2023 or 2024 | |
B2B B2G B2C | Wave 24 taxpayers must be integrated with FATOORA; the threshold reaches the mandatory VAT registration level | VAT-subject revenue > SAR 375,000 in 2022, 2023 or 2024 |
What format and platform does Saudi Arabia require?
Saudi Arabia requires e-invoices in XML (UBL 2.1) or PDF/A-3 with embedded XML (ZATCA e-invoice XML implementation standard (UBL 2.1 customisation)), exchanged via FATOORA platform (API integration) on a real-time basis. Invoices must be retained for 6 years, with a qualified digital signature. For format specifications and implementation detail, see the full Saudi Arabia technical guide on e-Invoice.app.
What are the penalties in Saudi Arabia?
- Failure to issue and store e-invoices electronically: fine of SAR 5,000 to SAR 50,000 depending on severity and repetition.
- Missing or unreadable QR code and similar field or format breaches: progressive ladder starting with a warning and a correction period, then SAR 1,000, SAR 5,000 and SAR 10,000 for repeat breaches within a rolling 12 months, rising to SAR 40,000.
- Deleting or improperly amending issued e-invoices: SAR 10,000 to SAR 50,000; general VAT violations are capped at SAR 50,000 under Article 45 of the VAT Law.
What changed recently?
- Wave 24 integration deadline passed, bringing taxpayers with VAT-subject revenue above SAR 375,000 into Phase 2 and effectively completing the rollout to all resident VAT-registered businesses.
- Wave 23 integration deadline took effect for taxpayers with VAT-subject revenue above SAR 750,000 in 2022, 2023 or 2024.
Need the full Saudi Arabia compliance detail?
This page is a high-level snapshot. For registration procedures, technical specifications, exemption rules and implementation guidance, see the detailed Saudi Arabia country guide on our partner site e-Invoice.app.
Saudi Arabia e-invoicing guide on e-Invoice.appSaudi Arabia e-invoicing: frequently asked questions
How were the ZATCA Phase 2 wave thresholds set?
ZATCA notified each wave at least six months in advance, defining it by VAT-subject revenue in specified reference years. Wave 1 captured taxpayers above SAR 3 billion in 2021, and each subsequent notice lowered the bar. Wave 24, the last announced wave, used a SAR 375,000 threshold measured across 2022, 2023 or 2024, which is the same figure as the mandatory VAT registration threshold. No Wave 25 has been announced; practitioners report that newly VAT-registered businesses are now expected to meet the Phase 2 requirements from the outset.
Do non-resident businesses have to issue Saudi e-invoices?
No. The E-Invoicing Regulation applies to resident taxable persons and to customers or third parties issuing invoices on their behalf. Non-established suppliers registered for Saudi VAT are outside the FATOORA obligation, and Saudi buyers typically handle these transactions through the reverse charge or self-billing arrangements agreed with ZATCA.
What exactly is the cryptographic stamp and how does it differ between standard and simplified invoices?
The cryptographic stamp is a digital signature generated with a ZATCA-issued certificate that binds each invoice to the taxpayer's compliant e-invoicing solution. Standard tax invoices are stamped by ZATCA on clearance, whereas simplified invoices are stamped by the taxpayer's own device before the invoice is reported within 24 hours. The full wave schedule, certificate onboarding steps and integration requirements are covered in the detailed Saudi Arabia guide on e-Invoice.app.
More detailed questions? See the full Saudi Arabia guide on e-Invoice.app.
Sources
This page was verified against the following sources on 23 July 2026.
- ZATCA determines the criteria for selecting the targeted taxpayers in Wave 24 for the Integration Phase of e-invoicing (Zakat, Tax and Customs Authority (ZATCA))
- E-Invoicing landing page (Zakat, Tax and Customs Authority (ZATCA))
- Wave 24 Deadline 30 June 2026 (SAR 375,000 Threshold) (VATupdate)
- E-Invoicing Fines in Saudi Arabia: What You Need to Know About ZATCA Penalties (Wafeq)
- Saudi Arabia E-Invoicing and Archiving Rules (Basware)
Follow e-Invoice.app on LinkedIn for e-invoicing mandate news and deadline alerts.
Latest Saudi Arabia VAT & e-invoicing news
Saudi Arabia e-invoicing 2026
Saudi Arabia’s e-invoicing regime is fully live, requiring all VAT‑registered businesses to issue invoices through a compliant Electronic Generation Solution (EGS) connected to the Fatoora platform. In 2026, two SME‑scale integration waves—Wave 23 and Wave 24—will bring additional businesses into the real‑time clearance system, with deadlines of 31 March 2026 and 30 June 2026 respectively, while the penalty‑waiver initiative expires on 30 June 2026.
Saudi Arabia approves GCC VAT reforms for cross-border trade
Saudi Arabia has approved amendments to the GCC Unified VAT Agreement, formalising a 5% minimum VAT rate across the Gulf and confirming Saudi Arabia's 15% and Bahrain's 10% rates. The reforms introduce a first‑port‑of‑entry model for import VAT, a VAT settlement mechanism for onward movements, and enhanced information sharing between GCC tax authorities.
ZATCA e-invoicing mandate in Saudi Arabia: The Complete Guide
Saudi Arabia has rolled out a comprehensive e‑invoicing mandate led by ZATCA, requiring all companies to issue and transmit electronic invoices via the Fatoora platform. The phased implementation includes mandatory clearance for B2B/B2G and e‑reporting for B2C, with progressive waves based on turnover thresholds. As of March 31, 2026, companies with annual turnover above SAR 750 000 must comply, with further thresholds set for June 2026.
Understanding VAT Amendments in Saudi Arabia: Implications for E-commerce and Marketplaces
Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has issued amendments to the VAT Implementing Regulations that clarify the responsibilities of electronic marketplaces and e-commerce platforms. The changes define when a marketplace is deemed to facilitate a supply and therefore liable for VAT, and introduce phased effective dates for compliance. Businesses operating in the Kingdom should review their operating models and contractual arrangements to ensure alignment with the updated framework.