Saudi Arabia e-Invoicing Mandate

This guide provides an overview of e-Invoicing requirements in Saudi Arabia, including the legal framework, the use of the Fatoora platform (operated by the Zakat, Tax and Customs Authority), compliance obligations, and key reporting considerations. It is intended to assist businesses that issue or receive invoices for transactions subject to Saudi Arabian Value Added Tax (VAT).

Tax Authority

Department of Zakat & Income Tax

Mandate Go-Live Date

December 2021 (Phased approach)

Digital Signature

Required

Archiving

Mandatory - 6 Years

Invoice Format

XML UBL 2.1 KSA Hybrid or PDF/A-3 (embedded XML)

Saudi Arabia introduced mandatory e-Invoicing under the supervision of the Zakat, Tax and Customs Authority (ZATCA) as part of a national digital transformation and VAT compliance initiative. The mandate was rolled out in two phases: Phase 1 (Generation Phase) implemented on 4 December 2021, requiring taxpayers to generate and store electronic invoices in structured format; and Phase 2 (Integration Phase) implemented from 1 January 2023, requiring integration with ZATCA’s FATOORA platform for validation and reporting. Phase 2 is being implemented in multiple waves based on annual taxable revenue thresholds.

The system operates under a hybrid Continuous Transaction Control (CTC) model combining clearance for standard tax invoices and near real-time reporting for simplified invoices.

Mandate Details

Mandate Status

Which types of transactions must be reported via e-Invoicing?

Effective: December 2021

Saudi Arabia are following a phased approach, with the mandate being implemented in “waves” according to various thresholds.

Are there any thresholds that determine e-Invoicing applicability?

Yes – Wave-based rollout according to annual taxable revenue:

18th Wave: 1 Aug 2025 – 2 million riyals;
19th Wave: 1 Sept 2025 – 1.75 million riyals;
20th Wave: 1 Nov 2025 – 1.5 million riyals;
22nd Wave: 1 Jan 2026 – 1 million riyals;
23rd Wave: 1 Apr 2026 – 0.75 million riyals;
24th Wave: 1 July 2026 – 0.375 million riyals;

Additional waves are expected.

Taxpayers who adopt the flat-rate regime
Third sector entities with revenue/fees of EUR 65,000 and over
Microenterprises with revenue/fees of EUR 25,000 and over
All taxable persons, residents or established, in Italy if their annual revenue is above EUR 25,000
Amateur sports associations

What are the implementation dates of the e-invoicing mandate?

Transaction Type

1 Aug 2025 (18th Wave)

1 Sept 2025 (19th Wave)

1 Nov 2025 (20th Wave)

1 Dec 2025 (21st Wave)

1 Jan 2026 (22nd Wave)

1 Apr 2026 (23rd Wave)

1 July 2026 (24th Wave)

Local - B2G (Public)

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Local - B2B (Domestic)

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Local - B2C (Domestic)

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Local - Cross-border reporting

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Foreign - B2B/B2C (non-established)

Entities with annual taxable revenue > SAR 4 million

> SAR 2 million

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> SAR 1.75 million

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> SAR 1.25 million

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> SAR 1 million

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> SAR 0.75 million

*******

> SAR 0.35 million

Not mandatory

Do I need to have a permanent establishment in Saudi Arabia to be required to e-invoice?

Resident taxable persons:

All taxable persons that are residents in the Kingdom of Saudi Arabia must comply with the mandate.

Non-resident taxable persons:

Taxable persons who are not residents in KSA are not required to issue e-invoices for supplies subject to tax in KSA.

Third parties issuing on behalf of resident taxpayers:

Customers or third parties issuing invoices on behalf of a resident taxable person must comply.

The trigger is taxable residency in KSA, not merely VAT registration alone.

Do I need a VAT registration in Saudi Arabia in order to apply for e-invoicing?

The mandate applies to taxable persons resident in KSA.

B2G, B2B & B2C: Applies to resident taxable persons subject to VAT.
Non-resident suppliers: Not required to issue e-invoices for supplies subject to KSA VAT.

What is the prescribed deadline for submitting e-invoices?

Standard Tax Invoices (B2B): May be issued within 15 days from the end of the month in which supply takes place.
Simplified Tax Invoices (B2C): Must be reported to FATOORA within 24 hours (near real-time).

Standard invoices require clearance before being exchanged with the buyer.

Are there any penalties for non-compliance?

Penalties range from 1,000 SAR to 40,000 SAR, depending on severity and frequency.

Examples include: failure to issue e-invoices, failure to maintain e-archiving, failure to integrate with ZATCA, failure to generate compliant invoices/credit notes, and first-time transgressions may result in a formal notice.

Repeated violations increase penalties.

Steps VAT IT can assist with

1. Confirm wave applicability based on annual taxable revenue.

2. Implement a compliant e-Invoice Generating Solution (EGS) capable of producing XML (UBL 2.1 KSA Hybrid) or PDF/A-3 (embedded XML), or integrate with a compliant e-Invoicing solution.

3. Integrate the system with ZATCA’s FATOORA platform via API, unless using already integrated compliant service provider.

4. Generate Standard Tax Invoices and submit for clearance; obtain cryptographic stamp and QR code before issuance.

5. For Simplified invoices, generate CSID and QR code and report within 24 hours.

6. Implement compliant electronic archiving for minimum 6 years (storage abroad not permitted).

1. Register for Italian VAT (if required)

2. Implement an SDI-compliant solution capable of generating FatturaPA (XML) invoices

3. Integrate with the SdI platform (directly or via certified provider)

4. Validate and transmit invoices through SdI before issuing to customers

5. Ensure proper digital archiving in line with Italian e-archiving rules

6. Monitor rejections and correct errors

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Saudi Arabia e-Invoicing Mandate

Tax Authority

Department of Zakat & Income Tax

Mandate Go-Live Date

December 2021 (Phased approach)

Digital Signature

Required

Archiving

Mandatory - 6 Years

Invoice Format

XML UBL 2.1 KSA Hybrid or PDF/A-3 (embedded XML)

Effective: December 2021

B2G

B2B: subject to wave threshold

B2C: subject to wave threshold

Non-resident suppliers: Non-resident taxable persons without residence in KSA are not required to issue e-invoices for supplies subject to KSA VAT.

Intra-community transactions

Export & import cross-border transactionsf

Transport/shipping transactions

Are there any thresholds that determine e-Invoicing applicability?

What are the implementation dates of the e-invoicing mandate?

The trigger is taxable residency in KSA, not merely VAT registration alone.

The mandate applies to taxable persons resident in KSA.

B2G, B2B & B2C: Applies to resident taxable persons subject to VAT.
Non-resident suppliers: Not required to issue e-invoices for supplies subject to KSA VAT.

Standard Tax Invoices (B2B): May be issued within 15 days from the end of the month in which supply takes place.
Simplified Tax Invoices (B2C): Must be reported to FATOORA within 24 hours (near real-time).

Standard invoices require clearance before being exchanged with the buyer.

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Personal information

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Saudi Arabia e-Invoicing Mandate

Tax Authority

Department of Zakat & Income Tax

Mandate Go-Live Date

December 2021 (Phased approach)

Digital Signature

Required

Archiving

Mandatory - 6 Years

Invoice Format

XML UBL 2.1 KSA Hybrid or PDF/A-3 (embedded XML)

Effective: December 2021

B2G

B2B: subject to wave threshold

B2C: subject to wave threshold

Non-resident suppliers: Non-resident taxable persons without residence in KSA are not required to issue e-invoices for supplies subject to KSA VAT.

Intra-community transactions

Export & import cross-border transactionsf

Transport/shipping transactions

Are there any thresholds that determine e-Invoicing applicability?

What are the implementation dates of the e-invoicing mandate?

The trigger is taxable residency in KSA, not merely VAT registration alone.

The mandate applies to taxable persons resident in KSA. B2G, B2B & B2C: Applies to resident taxable persons subject to VAT. Non-resident suppliers: Not required to issue e-invoices for supplies subject to KSA VAT.

Standard Tax Invoices (B2B): May be issued within 15 days from the end of the month in which supply takes place. Simplified Tax Invoices (B2C): Must be reported to FATOORA within 24 hours (near real-time). Standard invoices require clearance before being exchanged with the buyer.

Steps VAT IT can assist with

Mexico Rule 2.9.21: SAT Real Time Tax Data Access Guide

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Can You Reclaim VAT on Corporate Events When Family Members Are Invited?

2026 footer form

The mandate applies to taxable persons resident in KSA.

B2G, B2B & B2C: Applies to resident taxable persons subject to VAT.
Non-resident suppliers: Not required to issue e-invoices for supplies subject to KSA VAT.

Standard Tax Invoices (B2B): May be issued within 15 days from the end of the month in which supply takes place.
Simplified Tax Invoices (B2C): Must be reported to FATOORA within 24 hours (near real-time).

Standard invoices require clearance before being exchanged with the buyer.