Saudi e-Invoicing 2026: A Complete Guide for ZATCA Fatoora Wave 24 Businesses
Everything you need to know about ZATCA Phase 2 e-invoicing, Wave 24 thresholds, XML & QR requirements, digital signing, CSR/OTP onboarding, and how to prepare your business step by step.
Saudi Arabia has entered an advanced phase of tax digitalization. Wave 24 of ZATCA's Phase 2 e-invoicing (Fatoora) applies to a wide segment of VAT-registered businesses that exceeded a defined revenue threshold during 2022 or 2023. This guide is written in plain, practical language to help you understand exactly what is required and prepare with confidence.
What is Phase 2 in short?
Phase 1 (December 2021) required local issuance of electronic invoices with a QR code. Phase 2 (integration) requires tax invoices to be sent to the Fatoora platform in real time (Clearance) or within 24 hours (Reporting for B2C), with an approved digital signature, a UUID, a chained hash, and XML in UBL 2.1 format.
Who does Wave 24 apply to?
Every VAT-registered Saudi business whose taxable revenue exceeded the threshold announced by ZATCA during 2022 or 2023. ZATCA officially notifies the business at least six months before the go-live date via the registered email and Fatoora account. Don't wait for the final notice — start preparing now to avoid the last-week rush.
Core technical requirements
UBL 2.1 XML
Every invoice must be generated in a standardized XML format including seller, buyer, line items, taxes, and references.
Digital signing & CSR
Generate a private key, request a CSR, activate it via an OTP from the Fatoora portal, and sign every invoice before submission.
Compliant QR code
The QR must encode seller name, VAT number, timestamp, total, VAT amount, and the XML hash plus signature.
Integration with Fatoora
Submit B2B invoices in real time for Clearance and B2C invoices within 24 hours for Reporting.
A practical 30-day readiness plan
Week 1: review your business data in Fatoora (15-digit VAT number, national address, activity). Week 2: pick a ZATCA-compliant solution and activate the CSR. Week 3: run a sandbox and submit test invoices. Week 4: pilot with your sales and accounting teams, train users, and review error logs.
Common mistakes that cost you fines
1) Incorrect or incomplete VAT number. 2) Incomplete national address. 3) Failure to retain the signed XML for 6 years. 4) Submitting B2B invoices after the deadline. 5) QR codes that don't meet Phase 2 specifications. Avoid these by regular reviews and pre-go-live testing.
How SIDA helps you
SIDA provides a ready-made integration with Fatoora, automatic XML and QR generation, digital signing of invoices, in-app CSR and OTP management, and a full archive of signed invoices — all through a polished Arabic-first interface, a secure cloud experience, and pricing that suits SMEs.
Frequently asked questions about Phase 2 of e-invoicing
Does Phase 2 apply to my business? It applies to VAT-registered businesses according to the integration waves announced by ZATCA based on revenue size. Check the authority's notices or your account on its platform to know your wave and final deadline.
What is the difference between tax invoices (B2B) and simplified invoices (B2C) in the integration phase? B2B tax invoices must be cleared before being issued to the customer, while simplified B2C invoices are reported within a defined period after issuance. Your accounting system must support both flows automatically.
How do I verify my accounting software is compliant? Check three things: the solution is listed among ZATCA-compliant e-invoicing solutions, it generates invoices in XML with a QR code, and it supports actual integration with the Fatoora platform rather than just file generation. Issue a full test invoice before going live.
What are the practical steps to integrate with the Fatoora platform? Four short steps: 1) Prepare your business data and VAT number. 2) Activate the technical solution and obtain the integration certificate (CSID) from the platform. 3) Connect your accounting system with the certificate and test submission in the sandbox. 4) Move to production and issue your first real invoice. Refer to the authority's official integration guideline for technical details.
What happens if I miss my wave's deadline? Non-compliance exposes the business to penalties under the violations and penalties regulation, in addition to audit friction and weaker tax record-keeping. Start early and leave enough time for testing before the deadline.
SIDA supports issuing e-invoicing-compliant invoices with a full Arabic interface, automatic journal entries and ready tax reports. You can try all of this free for 14 days before any commitment.