ZATCA Phase 2 E-Invoicing Guide for Saudi Retailers

Saudi Arabia's e-invoicing rules are rolled out in waves. Each wave has a revenue test and a deadline for connecting your system to the ZATCA Fatoora platform. If you sell in Saudi Arabia, you need to know your wave, what the invoice must contain, and what your point of sale has to do. This guide is written as of October 2026. Dates come from published ZATCA wave announcements as reported by advisory firms. Check your own wave on the ZATCA portal before you plan.

Where Phase 2 stands

Phase 2 is the integration stage. Your invoicing system is connected to the Fatoora platform, and each invoice carries cryptographic data. The waves so far, as reported:

• Wave 23: VAT-registered businesses with revenue above SAR 750,000 in the 2022 to 2024 test years. Integration was due between 1 January and 31 March 2026.
• Wave 24: businesses in the SAR 375,000 to 750,000 band. The integration date was 30 June 2026, so it has passed. Some older guides still show it as upcoming.
• Wave 25: the threshold is SAR 187,500 in VAT-subject revenue. It is the first wave to use calendar 2025 revenue as a test, so a business can be pulled in by an earlier strong year. The integration date is 1 February 2027. ZATCA is reported to notify targeted businesses at least six months before their date.

If you are not sure which group you are in, the threshold test is more important than your current turnover. Check your 2022 to 2025 revenue figures with your accountant.

Simplified vs standard invoices

Saudi e-invoices come in two types. The type decides how the invoice moves.

Simplified invoices (B2C)

Simplified invoices go to consumers and to buyers without a VAT number. They are issued straight away and reported to ZATCA within 24 hours. A QR code must be printed and visible on the receipt. Vendor guides describe a subtype code of 02 for simplified invoices.

Standard invoices (B2B)

Standard invoices go to VAT-registered buyers. They must be cleared by ZATCA before they reach the buyer. The buyer's VAT number is mandatory, and the QR code is required in Phase 2.

Some retail guides say simplified invoices can also cover small B2B supplies. We could not confirm that rule in an official source, so verify it before you rely on it.

QR code and XML in Phase 2

Phase 1 used a QR code with five fields: seller name, VAT number, timestamp, total with VAT, and VAT total. Phase 2 adds technical fields for the invoice hash, the digital signature, the public key and the stamp. Guides disagree on the exact count of fields, so use the current ZATCA technical specification and the Annex data dictionary when you build or check your system.

The invoice itself is generated as structured XML (UBL). Your POS needs to fill the required fields, sign each invoice with the device certificate, and link each invoice to the one before it through the hash chain.

What your POS must do

• Generate compliant XML for both simplified and standard invoices.
• Sign every invoice with the device certificate issued for your registration.
• Keep invoice numbers sequential and linked by hash, with no gaps.
• Handle offline periods. Simplified invoices can be queued and reported within 24 hours.
• Reference the original invoice on every credit note and debit note.
• Print the QR code on 58 mm and 80 mm receipts, and make sure it scans.
• Use the right VAT number format. Saudi VAT numbers have 15 digits.
• Store Arabic and English names for items, customers and your business.

A practical plan for the integration

1. Confirm your wave on the ZATCA portal, using the test years that apply to you.
2. Ask your POS vendor whether they have an integration path for your wave, and what they will do for it.
3. Set up a test device and run simplified and standard invoices in the sandbox.
4. Check the QR code with a scanner app on printed receipts.
5. Train cashiers to handle a standard invoice when a business buyer asks for one.
6. Plan the go-live date with a few weeks of buffer before your deadline.

Common mistakes to avoid

• Waiting for the deadline. Integration projects take longer than most shops expect, especially when the device certificate and the test phase are involved.
• Trusting an old wave date. Several guides still show 30 June 2026 as upcoming. Check the current ZATCA announcement.
• Changing the receipt without changing the data. A QR code printed on a receipt is only useful when the invoice behind it is signed and reported correctly.
• Forgetting returns. A credit note has to reference the original invoice. Test a return on a card sale and a cash sale.
• Skipping the test environment. Run every invoice type before you go live, not just the first one.

Where AIFFICIENTO fits

AIFFICIENTO can configure Fatoora integration for your registration on request. Our team sets it up and tests it with you. We do not claim ZATCA certification or approval for AIFFICIENTO, and you should ask us to show you the current status of the integration for your wave before you rely on it.

The point of sale runs on a Windows PC with a local server, so counters keep selling when the internet is slow. Receipts can carry a QR code, and you can keep Arabic and English item names on the same receipt. For more detail, see tax e-invoicing features and POS software for Saudi Arabia.

Pricing in SAR

In Saudi Arabia, the Starter plan is SAR 39 per month for one counter and up to three users. Growth is SAR 95 per month for up to three counters, with unlimited users, promotions, loyalty and a larger AI allowance. Business is SAR 179 per branch per month, with unlimited counters, multi-branch support and tax-integration setup. Yearly billing gives two months free. Compare the plans on the pricing page.

You can start a 30-day free trial with full access and no credit card. Use it to set up your branches, your tax settings and a test sale, then book the integration work early so you are not rushing before your wave date.