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Saudi Arabia — Compliance

ZATCA Phase 2 e-invoicing, built into the ledger

Aurex generates compliant XML invoices, applies the cryptographic stamp and UUID, chains each invoice to the hash of the one before it, renders the QR code, and clears or reports to the Fatoora platform. It is part of the Sales module, not a separate product you integrate.

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At a glance

Phase 1 (Generation) in force
4 December 2021
Phase 2 (Integration) waves
1 January 2023 —
Standard VAT rate
15%
Mandatory VAT registration
SAR 375,000

Figures current as of August 2026. Verify against ZATCA before relying on them.

What the regulation actually requires

ZATCA introduced e-invoicing in two phases. Phase 1 changed how invoices are produced. Phase 2 changed who they are sent to, and added cryptographic requirements that a spreadsheet or a general-purpose accounting package cannot satisfy on its own.

Phase 1 — Generation

In force since 4 December 2021 for all VAT-registered taxpayers. Invoices must be issued and stored electronically in a structured format, with mandatory fields including the seller VAT number and a QR code on simplified invoices. Handwritten and free-text invoices are no longer valid, and the system producing them must prevent tampering and deletion.

Phase 2 — Integration

Rolling out in waves by annual revenue since 1 January 2023. Systems must integrate directly with ZATCA's Fatoora platform. Standard (B2B) invoices require clearance before being issued to the buyer; simplified (B2C) invoices are reported within 24 hours. Each invoice carries a UUID, a cryptographic stamp and a hash of the previous invoice, forming a tamper-evident chain.

Technical requirements and how Aurex meets them

The requirements differ between standard and simplified invoices. Both are handled in the same document flow, so staff do not choose a compliance path at the point of sale.

Requirement Applies to Aurex
UBL 2.1 XML, or PDF/A-3 with embedded XML Standard and simplified Built in
Universally unique identifier per invoice Standard and simplified Built in
Hash of the previous invoice (tamper-evident chain) Standard and simplified Built in
Cryptographic stamp Simplified (B2C) Built in
QR code with prescribed TLV fields Simplified (B2C) Built in
Clearance with Fatoora before issuing to the buyer Standard (B2B) Built in
Reporting to Fatoora within 24 hours Simplified (B2C) Built in
Tamper-proof archival and audit trail Standard and simplified Built in

Requirements summarised as of August 2026. ZATCA publishes the authoritative specification and implementation resolutions; this table is a plain-language summary, not a substitute for them.

Common questions

Do I need a separate e-invoicing provider alongside Aurex?
No. Generation, stamping, hashing, QR rendering and the Fatoora connection are part of the Aurex Sales module. Some ERP vendors in this market satisfy ZATCA through a third-party middleware layer you license separately; the practical difference appears when something fails at 2am and you need one party accountable for it rather than two pointing at each other.
What happens if an invoice fails clearance?
A standard invoice that fails clearance is not valid to issue. Aurex holds it, surfaces the rejection reason returned by Fatoora against the document, and allows correction and resubmission without breaking the hash chain. Simplified invoices are reported rather than cleared, so the sale completes and the reporting retries.
Which Phase 2 wave am I in?
ZATCA notifies taxpayers directly, at least six months before their wave begins, based on annual revenue in the reference year. If you have not been notified, you are not yet in scope for integration — but Phase 1 generation requirements already apply to every VAT-registered business.
Does this work for retail and restaurant point of sale?
Yes. POS transactions issue simplified invoices with the required QR code, and report to Fatoora within the 24-hour window. Tills continue to sell if the connection drops and reconcile when it returns, because a compliance integration that stops trade during an outage is not one anyone will keep using.

See it clear a real invoice

A working demonstration against the ZATCA sandbox, using your invoice layout and your VAT registration — not a slide deck.

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