Saudi Arabia mandates electronic invoicing (E-Invoicing) compliance for businesses through the FATOORA Portal. This system ensures regulatory adherence, secure invoice processing, and seamless integration with the ZATCA (Zakat, Tax, and Customs Authority) framework. The FATOORA Simulation Portal serves as a separate testing environment for businesses before full-scale implementation.

1. General Compliance Requirements

• Businesses must generate, store, and report invoices electronically as per VAT regulations.
• Use compliant E-Invoicing Generation Solutions (EGS).
• Ensure real-time invoice validation and reporting through the FATOORA system.
• Maintain detailed invoice records for audits and regulatory checks.

2. E-Invoicing Phases & Regulations

✅ Phase 1 (Generation Phase) – Effective December 4, 2021

• Businesses must generate electronic invoices (E-Invoices) through digital means.
• No specific invoice format is required, but VAT compliance is mandatory.
• QR codes are recommended but not mandated.
• No cryptographic stamping or device registration required.

✅ Phase 2 (Integration Phase) – Effective January 1, 2023 (Implemented in Waves)

• Mandatory XML format for invoices.
• QR codes and cryptographic stamps are required.
• Compliant solutions must be registered on the FATOORA Portal.
• Businesses must report invoices in real time via API to the FATOORA system.
• Tax invoices must be cleared before sharing with clients.

Key Features of the FATOORA Portal

1. Core Functionalities for Taxpayers

• Onboarding EGS Units: Businesses can register their E-Invoicing Generation Solutions (EGS) and generate cryptographic stamp identifiers (CSIDs).
• Renewing Cryptographic Stamps (CSID): Businesses can renew expired CSIDs for multiple devices.
• Device Management: View and manage all onboarded devices, including revocation if necessary.
• E-Invoicing Statistics: Access real-time data on invoice submission (Accepted, Accepted with Warnings, Rejected).
• API Documentation Access: Redirection to the Developer Portal for seamless integration.

2. FATOORA Simulation Portal (Testing Environment)

• End-to-End Testing: Allows businesses to test invoice generation & reporting without affecting real transactions.
• Independent Environment: Devices must be onboarded separately from the main FATOORA Portal.
• Different API Endpoints: Businesses must use dedicated URLs for simulation testing.
• Irreversible Actions: Device revocation in the Simulation Portal cannot be undone.

3. Secure Access & Credentials

• ERAD Credentials Required:
  • TIN (Tax Identification Number) or email registered with ZATCA.
  • Password authentication for security.
• Separate Credentials for Developer Portal: Different from FATOORA login credentials.
• Portal Access via ZATCA Website: Users can switch between the FATOORA and Simulation Portals from the top-right menu.

4. Invoice Submission Tracking & Error Reporting

• 12-Month E-Invoicing Summary: Users can view invoice statistics for the past year.
• Detailed CSV Reports for Errors: Businesses can download error logs for rejected invoices.
• Real-Time Status Updates: Clear visibility into accepted, flagged, or rejected invoices.

By following these compliance regulations and utilizing the FATOORA Portal effectively, businesses in Saudi Arabia can ensure seamless e-invoicing, VAT compliance, and efficient tax auditing while leveraging automation and real-time reporting.