ZATCA's Fatoora integration phase: what Saudi businesses in the later waves need to do

A Riyadh engineering consultancy received ZATCA's notification for its wave: six months to integrate its invoicing system with the Fatoora platform. It already issues electronic invoices with QR codes, as required since December 2021. Integration means each B2B invoice will be cleared by ZATCA before the client receives it.

Two phases

Generation (since 4 December 2021). All VAT-registered businesses issue electronic invoices in a compliant solution, with QR codes on simplified invoices.

Integration (in waves since 1 January 2023). Businesses connect their e-invoicing solution to ZATCA's Fatoora platform:

• standard tax invoices (B2B) are sent to ZATCA for clearance in real time, and only then shared with the buyer,
• simplified tax invoices (B2C) are issued and reported to ZATCA within 24 hours.

Waves

ZATCA rolls out integration in waves, each defined by revenue in a reference year, with lower thresholds in later waves. Each wave is notified at least six months before its date. By 2026 the waves had reached much smaller businesses. Check your ZATCA account for your notification.

Steps

1. Confirm your e-invoicing solution supports integration: XML format, cryptographic stamp, QR code and the Fatoora APIs.
2. Onboard your devices or units to the platform.
3. Test clearance and reporting before your date.
4. Train staff on what happens when an invoice is rejected.

Foreign customers

Export invoices are issued through the same system. Qualifying exports of goods and services are zero-rated for VAT. Keep customs records for goods and contracts and evidence of use abroad for services.

The payment side

Integration changes how invoices are approved, not how customers pay. Foreign customers pay Saudi accounts by international transfer. US, EU and UK clients pay faster when they can use their own domestic rails.

Paying into Saudi Arabia: the local rail

Source: SAMA: sarie. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

Rivet is not an e-invoicing solution. A Rivet business account accepts registered companies after verification, including Saudi companies, subject to local rules, with US account details on every plan and euro and sterling details from the Growth plan. Rivet is not a bank; regulated partner institutions hold the funds.