Fatoora E-Invoicing: Who Qualifies and What You Get
Learn how Fatoora E-Invoicing works for businesses in Saudi Arabia and what you need to stay compliant with the latest digital requirements.
Fatoora E-Invoicing is a digital requirement for businesses to issue electronic invoices to their customers. This system is designed to move business transactions into a digital format to ensure transparency and accurate record-keeping.
Who it's for
This scheme is mandatory for all businesses that issue invoices to customers. If your business model involves selling goods or services and providing a receipt or invoice to a buyer, you fall under this requirement. It is not limited to one specific industry; rather, it applies to any business entity operating within the Kingdom that needs to document sales through invoices.
What you get
By implementing this system, your business achieves compliance with phase 2 of the e-invoicing integration. This phase focuses on the technical integration of your business systems with the required digital standards. Staying compliant ensures that your business operates within the regulatory framework and maintains seamless digital transaction records.
What it costs you
There is no direct government fee mentioned for the scheme itself, but there are practical costs to consider regarding your business infrastructure. To meet the technical requirements, you will need to invest in and maintain compatible accounting software or a Point of Sale (POS) system. Your chosen software must be capable of handling the digital integration required for the second phase of the e-invoicing process.
The catch to know
The most important detail that businesses often overlook is the requirement for physical documentation. If you provide printed receipts to your customers, every single printed receipt must have a QR code present on it. Without this QR code on the physical paper, your documentation may not meet the necessary standards for compliance.
How to apply
- Review your current business software to ensure it is compatible with the digital invoicing standards.
- Update your accounting or Point of Sale (POS) systems to support the phase 2 integration.
- Confirm that your hardware is capable of printing the mandatory QR code on every receipt.
- Visit the official portal for technical guidance and more details: https://zatca.gov.sa/ar/E-Invoicing