Key takeaways
- Phase 2 is an integration with ZATCA’s platform, not just a printable invoice.
- Standard invoices are cleared before issue; simplified invoices are reported shortly after.
- Plan for outages, credit notes, archiving and secure key storage from day one.
What Phase 2 actually changes
Phase 1 required businesses to generate electronic invoices and stop issuing handwritten or manually edited ones. Phase 2, the integration phase, goes further: your invoicing system must connect to ZATCA’s Fatoora platform and exchange invoice data with it, rolled out to taxpayers in waves.
What your system has to produce
- A structured XML invoice following the required format (based on UBL 2.1)
- A QR code and a cryptographic stamp on every invoice
- A unique invoice counter and a hash linking each invoice to the previous one
- Arabic and English content where required, with correct VAT breakdowns
Clearance versus reporting
Standard invoices, typically issued to businesses and government entities, are sent to ZATCA for clearance before you give them to the customer. Simplified invoices, typically for consumers, are issued immediately and reported to ZATCA within a defined period. Your system needs both flows, and a clear rule for which one applies.
A practical build checklist
- Complete onboarding and obtain the required certificates for each device or solution unit
- Store private keys securely and rotate them according to policy
- Support credit and debit notes linked to the original invoice
- Queue and retry submissions when ZATCA or your network is unavailable
- Archive invoices for the retention period and keep them retrievable
- Test end to end in the sandbox before your wave deadline
If you run a mix of ERP, POS and billing tools, an integration layer that centralises invoice creation and submission is often cleaner than modifying every system.
This article is general information, not legal advice. Please confirm current requirements with the relevant authority.
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