Saudi e-invoicing: what does Phase 2 ask of your business?

The Zakat, Tax and Customs Authority rolled out e-invoicing in two phases: Phase 1 “generation” since 4 December 2021, requiring invoices issued from an electronic system with defined fields and a QR code on simplified invoices; and Phase 2 “integration”, which began on 1 January 2023 and applies to businesses in successive waves, each notified in advance.

What changes in Phase 2?

• Your system’s “invoicing unit” is registered with the authority using a one-time code (OTP) from the FATOORA portal, and receives a digital certificate for your business.
• Every invoice is built in a standard XML format, digitally signed, and hash-chained to the previous one, so a document cannot silently disappear from the sequence.
• Standard tax invoices (business to business) are sent for clearance before being shared with the buyer; simplified invoices (to consumers) are reported within 24 hours.
• An issued invoice is never edited or deleted — corrections go through credit or debit notes along the same path.

What does that mean for your accountant?

Mistakes after issuing are now expensive: there is no “quick edit” on a submitted invoice. You need a program that prevents mistakes before issuing: tax from one engine, approval before submission, approved documents locked, and the authority’s reply shown in plain language.

How Arttop 360 handles it

The FATOORA integration is built into the program’s own server: enter the OTP in your establishment profile, the program onboards the invoicing unit and passes the compliance checks, then every invoice is sent automatically once approved, and you follow its status in «Authority tracking» with an Arabic explanation of every reply code.