The most mature and prescriptive e-invoicing mandate in the region: real-time clearance for B2B, and reporting within 24 hours for simplified (B2C) invoices, enforced in phased waves by taxpayer revenue threshold.
Mandatory since December 2021: e-invoices generated in a structured format with a compliant e-invoicing solution, no more handwritten or basic PDF invoices.
Rolling out in waves since 2023, ordered by taxpayer revenue: integration with ZATCA's platform for real-time clearance and reporting.
ZATCA continues to bring lower-revenue taxpayer groups into Phase 2 on a published schedule.
B2B (standard tax invoices) go through clearance — submitted to ZATCA and cryptographically stamped before being shared with the buyer. B2C (simplified invoices) go through reporting — issued to the customer immediately, then reported to ZATCA within 24 hours.
Non-compliance can result in financial penalties escalating with repeat violations, and in Phase 2, failure to integrate can block a taxpayer's ability to issue valid invoices at all. See our detailed ZATCA end-to-end process for exactly how dsFatoora keeps you compliant at every stage.