Fatoora: Who Qualifies and What You Get

Fatoora is a standardized system designed to ensure that businesses in Saudi Arabia use electronic invoicing for their commercial transactions.

👤Who it's for

This scheme is mandatory for all businesses that are currently registered for VAT. If your business is registered for Value Added Tax, you fall under the requirements of this electronic invoicing mandate.

🎁What you get

By adopting this system, your business achieves standardized electronic invoicing compliance. This means your billing processes, records, and digital outputs are aligned with the official technical standards required by the authorities. This standardization is meant to create a consistent and digital way of handling commercial documentation across the country.

💰What it costs you

While there is no direct government fee mentioned for the scheme itself, there is a practical requirement to implement compliant technology. To meet these standards, you will need to acquire and maintain electronic invoicing software that is specifically designed to be compliant with the current regulations. This involves ensuring your internal accounting or billing tools can generate the correct digital formats required by the system.

⚠️The catch to know

The most important thing to remember is that the system is strictly regulated. If you use an outdated method or software that does not meet the specific technical standards, your invoices will be rejected by the official ZATCA portal. This means your business must ensure its digital output is perfectly aligned with the requirements to avoid issues with transaction validation.

📝How to apply

1. Verify that your business is officially registered for VAT in Saudi Arabia.
2. Select and implement electronic invoicing software that meets the necessary technical specifications.
3. Test your software to ensure it can communicate correctly with the official portal.
4. Visit the official portal to review all technical requirements: https://zatca.gov.sa/ar/E-Invoicing/