ZATCA E-Invoicing (Fatoora) for Online Stores: Phase 2 & Wave 25

If you sell online in Saudi Arabia and you're VAT-registered, every order needs an e-invoice. Not a PDF from a template, but a real electronic invoice from a compliant system.

ZATCA (the Zakat, Tax and Customs Authority) calls its e-invoicing system Fatoora. It's rolled out in two phases, and the second one now reaches small stores.

Here's the good news. On Salla or Zid, most of the work is already done for you, and on Shopify it's one app.

Here's how to find your deadline and get every order invoice right before it arrives.

What is ZATCA e-invoicing (Fatoora)?

E-invoicing means your invoices are created in a structured electronic format by an approved system. A scanned paper invoice doesn't count, and neither does one typed in Word or Excel.

It covers every tax invoice, plus credit and debit notes. There are two kinds of invoice:

• Standard tax invoice. For sales to other businesses (B2B) and to government buyers.
• Simplified tax invoice. For sales to consumers (B2C), which is what almost every online order produces.

Why does ZATCA care? Real-time invoice data cuts tax fraud. For you, it means cleaner books and receipts that customers can verify with a quick scan.

Phase 1 vs Phase 2: what's the difference?

Phase 1 is about how you create and store invoices, while Phase 2 is about connecting your system to ZATCA.

In Phase 2, each invoice also carries a unique ID, a link to the previous invoice and a cryptographic stamp. Your software adds all of this, so you never type it.

Which wave are you in?

ZATCA picks each wave by the taxable revenue in your VAT returns, and it notifies you at least six months before your deadline.

The thresholds have dropped fast:

So how does that apply to you? If your taxable sales passed SAR 375,000 in any year from 2022–2024, you should already be connected. That figure is also the mandatory VAT registration threshold.

Wave 25 sweeps up almost everyone else. SAR 187,500 is also the voluntary registration threshold, so most small VAT-registered stores land here. One good year in the 2022–2025 window is enough to put you in.

As of October 2026, ZATCA hasn't announced a Wave 26. Check the ZATCA roll-out page and your portal inbox each quarter.

What goes on a B2C invoice?

A simplified invoice needs a QR code that anyone can scan. In Phase 1, that code holds five fields, and Phase 2 adds the invoice hash and cryptographic stamp to the same code.

For example, a Riyadh shopper buys a SAR 230 abaya. Here's what the QR on her invoice holds:

Your system issues the invoice the moment she pays. Once you're on Phase 2, it also reports the XML to Fatoora within 24 hours, without you lifting a finger.

Need to work out the VAT inside a price? Try our VAT calculator.

A few format rules trip stores up:

• Dates. Use Gregorian dates on invoices, and let your system set the timestamp rather than typing in a Hijri date.
• Currency. The XML currency field stays "SAR". The new riyal sign can appear on the human-readable PDF, as our Saudi riyal symbol guide explains.
• PDF vs XML. The XML file is the legal invoice, and a PDF/A-3 with the XML embedded inside is the usual way to share it.

What does your store platform do for you?

Saudi store builders handle Fatoora inside the dashboard. You connect once, and every order after that gets a compliant invoice.

On Salla, the tax number and VAT settings sit on the Pro plan, so check Salla pricing before you register for VAT. Zid unlocks tax invoice settings on its Growth plan.

Shopify doesn't handle ZATCA on its own, so Saudi stores add an app such as Marmin, Sufio or a Qoyod connector. The Shopify in Saudi Arabia guide walks through the setup.

What are the penalties?

ZATCA's fines depend on the type of violation and how often it happens. Its published e-invoicing penalties are:

• Not issuing electronic invoices: a fine of SAR 5,000.
• Deleting or editing an invoice after it's issued: a fine of SAR 10,000.
• Missing the QR code or the buyer's VAT number, or not reporting a system failure: a warning first.

Repeat violations cost more. So fix a mistake with a credit or debit note, and never by editing the original invoice.

How to get Phase 2 ready

Five steps get you there:

1

Confirm your wave

Check your ZATCA portal messages and your highest yearly taxable sales in 2022–2025.

2

Choose your solution

Use your platform's built-in invoicing or a provider on ZATCA's qualified list.

3

Map your invoice types

Simplified for consumers, standard for business buyers, credit notes for refunds.

4

Onboard on Fatoora

Log in to the Fatoora portal, get a one-time password and link each store, POS or app that issues invoices.

5

Test, then go live

Run test orders, scan the QR codes and fix any rejected invoices before your deadline.

Want a specialist to handle onboarding? Compare VAT and tax advisors in Saudi Arabia, or browse our full Saudi regulations hub.

Notes for non-residents

Foreign sellers without a Saudi entity are outside Phase 1, and the integration waves target residents. If you're registered for Saudi VAT as a non-resident, still keep clear records of every sale and import. The non-resident VAT guide covers your filing.

Open a Saudi company later and the full rules apply from your first VAT-registered sale.

Notes for marketplace sellers

On Amazon.sa and noon, you're the seller, so your e-invoices are your responsibility. Noon's seller help centre has a KSA e-invoicing policy and ZATCA integration articles. Confirm your marketplace invoices carry your own VAT number and QR code.

Notes for B2B sellers

Wholesale orders need standard tax invoices with the buyer's VAT number. In Phase 2, ZATCA clears each one in real time before you send it to the buyer. Make sure your platform can switch an order to a standard invoice.

2026 change log

• 26 October 2026. We checked for a Wave 26. None has been announced.
• 24 July 2026. ZATCA announced Wave 25, reaching residents above SAR 187,500 a year. Their deadline is 1 February 2027.
• 30 June 2026. Wave 24 deadline passed for residents above SAR 375,000.
• 31 March 2026. Wave 23 deadline passed for residents above SAR 750,000.