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Saudi Arabia has fully implemented mandatory e-invoicing to modernize tax compliance and enhance financial transparency. The country’s electronic invoicing system, FATOORA, requires businesses to issue digital invoices for VAT-registered transactions.
The e-invoicing system is part of Saudi Arabia’s Vision 2030 initiative, aimed at reducing fraud, improving tax reporting, and digitizing financial transactions. Businesses must generate invoices and submit them for real-time validation through the national tax platform.
Regulatory authority
The Zakat, Tax, and Customs Authority (ZATCA) oversees e-invoicing regulations and compliance.
E-invoicing requirements
Since December 2021, e-invoicing has been mandatory for all VAT-registered businesses in Saudi Arabia.
Accepted invoice formats
Invoices must be issued in XML format, following the FATOORA e-invoicing standard.
Transmission channels
Invoices must be submitted through ZATCA’s electronic invoicing system before being transmitted to recipients.
Digital signatures
Digital signatures are required for authentication and fraud prevention.
Archiving requirements
Invoices must be stored for six years under Saudi tax laws.
How B2B e-invoicing works in Saudi Arabia
Businesses generate invoices in XML format and submit them for validation through the FATOORA platform before issuing them to customers.
How B2G e-invoicing works in Saudi Arabia
Government suppliers must submit invoices through the ZATCA system to ensure compliance with procurement regulations.
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