Required certification · Saudi Arabia
ZATCA E-Invoicing (Fatoora)
Saudi Arabia's mandatory e-invoicing regime, run by ZATCA
Market position
The Zakat, Tax and Customs Authority (ZATCA) runs Saudi Arabia's e-invoicing regime. Phase 1, from 4 December 2021, requires e-invoices and e-notes to be generated electronically; Phase 2, from 1 January 2023, requires businesses to integrate their invoicing systems with ZATCA's Fatoora platform and send e-invoices to it. Phase 2 is rolled out in waves by turnover, and EY reports that Wave 25, announced in July 2026, reaches taxable turnover above SAR 187,500.
Saudi Arabia-specific note
EY reports that ZATCA's Wave 24 covered taxable turnover above SAR 375,000, with integration between 1 April and 30 June 2026, and that Wave 25 covers turnover above SAR 187,500 in any year from 2022 to 2025, with integration starting from 1 February 2027. A small contractor above that level should expect a ZATCA notice and pick software that says it supports Phase 2 integration with Fatoora.
Pros
- + Sets one national standard that invoicing software must meet
- + Businesses are called into Phase 2 in dated waves, with notice from ZATCA
- + Local tools such as Qoyod, Wafeq and Daftra say they handle Phase 2 for you
Cons
- − Mandatory: businesses comply to avoid possible penalties
- − Phase 2 needs invoicing software that connects to ZATCA's Fatoora platform
- − Wave 25 brings in businesses with taxable turnover above SAR 187,500
Typical Saudi Arabia pricing
No fee amounts confirmed: zatca.gov.sa could not be reached during this check. The main cost is invoicing software that can generate e-invoices and connect to the Fatoora platform.
Why this matters for Saudi Arabia trades
The Engineering Professions Practice Law requires Saudi Council of Engineers (SCE) accreditation before anyone practises engineering, with fines of up to SAR 1 million. Under the Contractor Classification Law, government bodies may not accept a bid for a project subject to classification unless the contractor is classified in its field, activity and grade; classification requests and building permits are filed on Balady, where permit plans are checked against the Saudi Building Code and latent defects insurance is a required document. ZATCA’s Phase 2 requires businesses called in by turnover wave to connect their invoicing software to the Fatoora platform (EY reports that Wave 25 reaches taxable turnover above SAR 187,500 and that businesses in it should prepare to comply with Phase 2 starting from 1 February 2027). Nitaqat places each entity in one of five Saudization ranges that decide access to services such as new expatriate visas and work permits, and Argaam reported in 2018 that firms must join the Saudi Contractors Authority before bidding for tenders.
Saudi construction and trades software selection is shaped by ZATCA’s mandatory e-invoicing regime (Phase 2 integration with the Fatoora platform, rolled out in turnover waves), contractor classification by the Ministry of Municipalities and Housing for public projects, building permits on Balady checked against the mandatory Saudi Building Code, Saudization ranges under Nitaqat tracked on Qiwa, and government tenders run on Etimad. Several vendors listed here offer Arabic and English interfaces, and some publish SAR prices.
Frequently asked
Is ZATCA E-Invoicing (Fatoora) a good fit for Saudi Arabia trades?
The Zakat, Tax and Customs Authority (ZATCA) runs Saudi Arabia's e-invoicing regime. Phase 1, from 4 December 2021, requires e-invoices and e-notes to be generated electronically; Phase 2, from 1 January 2023, requires businesses to integrate their invoicing systems with ZATCA's Fatoora platform and send e-invoices to it. Phase 2 is rolled out in waves by turnover, and EY reports that Wave 25, announced in July 2026, reaches taxable turnover above SAR 187,500. EY reports that ZATCA's Wave 24 covered taxable turnover above SAR 375,000, with integration between 1 April and 30 June 2026, and that Wave 25 covers turnover above SAR 187,500 in any year from 2022 to 2025, with integration starting from 1 February 2027. A small contractor above that level should expect a ZATCA notice and pick software that says it supports Phase 2 integration with Fatoora.
What does ZATCA E-Invoicing (Fatoora) cost in Saudi Arabia?
No fee amounts confirmed: zatca.gov.sa could not be reached during this check. The main cost is invoicing software that can generate e-invoices and connect to the Fatoora platform. Pricing and availability can change by region; confirm current Saudi Arabia pricing on the vendor's site before committing.
Other Saudi Arabia vendors
Saudi Council of Engineers (SCE)
Required certification
Contractor Classification (MOMAH)
Required certification
Balady Platform
Required certification
Saudi Building Code (SBC)
Required certification
Qiwa & Nitaqat (Saudization)
Required certification
Saudi Contractors Authority (Muqawil)
Required certification