ZATCA E-Invoicing Checklist for Your Store in 2026

E-invoicing in Saudi Arabia is no longer optional. Since 2021, ZATCA (Zakat, Tax and Customs Authority) has required every VAT-registered business to issue e-invoices. If your store isn't compliant, you face fines starting at SAR 1,000 and climbing to SAR 50,000 + business suspension. This guide covers everything: phases, requirements, technical solutions, and penalties.

ZATCA basics

Who's covered?

• Every VAT-registered business
• Regardless of size
• Includes both online and physical stores
• Includes B2B and B2C
• Services and goods companies

Who's not covered?

• Businesses not VAT-registered (revenue < SAR 375K)
• Government bodies (some categories)
• Sales to individuals < SAR 1,000 may be exempt from some requirements

The two phases

• Phase 1 (Generation): since December 2021. Every invoice in a structured format (XML/PDF/A-3 with QR)
• Phase 2 (Integration): rolled out from January 2023, in waves by revenue. Every invoice transmitted directly to ZATCA via API

Phase 1 requirements

Every invoice must include:

• ✅ Full seller name
• ✅ VAT number (15 digits)
• ✅ Issue date and time
• ✅ Product/service details
• ✅ Unit price
• ✅ VAT (15%)
• ✅ Total including tax
• ✅ QR Code containing the above
• ✅ Buyer name (for tax invoices B2B)
• ✅ Buyer VAT number (if applicable)
• ✅ Invoice currency

Phase 2 requirements

In addition to the above:

• Cryptographic stamp (digital signature)
• Unique identifier per invoice (UUID)
• Direct ZATCA API connection
• "Clearance" approval before issuing the invoice (tax invoices)
• "Reporting" within 24 hours (simplified invoices)
• CSID certificate (Cryptographic Stamp Identifier)
• Specific API protocol (REST with OAuth)

How do you know when Phase 2 hits you?

ZATCA notifies you by official email 6 months ahead. Waves by revenue:

Wave	Revenue	Effective date
1	SAR 3B+	Jan 2023
2	SAR 500M+	Jul 2023
3	SAR 250M+	Oct 2023
4	SAR 150M+	Nov 2023
5	SAR 100M+	Dec 2023
...	...	...
Final (2025–2026)	SAR 3M+, then 1M+	Gradual

Check your ZATCA account. Don't wait for the notice, be ready ahead of it.

Technical solutions

1. Salla, Zid, Shopify

Built-in ZATCA integration. Click "enable" → upload certificate → done. Easiest and fastest for new stores.

2. WordPress / WooCommerce

Use approved plugins:

• ZATCA E-Invoicing for WooCommerce (most popular)
• VAT Invoice for WooCommerce
• WP ZATCA

Plugin cost: SAR 0–500. Requires technical setup (certificate, API connection).

3. Accounting systems

System	Support
Zoho Books	Full
QuickBooks	Partial
Xero	Partial
Qoyod (Saudi)	Full
Almuhasib	Full
Wafeq (Saudi)	Full

4. Specialized solutions (Approved Providers)

ZATCA publishes a list of 50+ approved providers:

• ClearTax KSA
• Avalara
• Saudi e-Invoice Solutions
• Fatoorah (ZATCA-approved)
• TruQC
• TallyZatca

Cost: SAR 200–2,000/month.

5. Custom development

For enterprises with internal ERP (SAP, Oracle, Microsoft Dynamics). Cost: SAR 30,000–200,000. Requires a dedicated tech team.

Compliance checklist

Before you start

• Active VAT number
• ZATCA portal account (zatca.gov.sa)
• Determine your invoice types (B2B / B2C)
• Pick the right technical solution
• Train the accounting team

Phase 1

• System issues invoices in the correct format (XML/PDF/A-3)
• QR Code on every invoice
• Keep copies for at least 6 years
• Don't edit invoices after issuing (use Credit Note)
• Integration with internal accounting system
• Full testing before going live
• Invoice backups (see backup strategy)

Phase 2

• CSID certificate from ZATCA
• Approved digital signature
• ZATCA API integration
• Test in Sandbox before going live
• Backup plan if the ZATCA API goes down (Store-and-Forward)
• Connection status monitoring
• Alerts on failed invoice sends

Common mistakes

1. Delaying implementation: thinking you're too small to be noticed, wrong. ZATCA uses VAT data to identify who's in scope
2. Only issuing paper invoices: penalty
3. Inability to respond to ZATCA: if they request an old invoice, you must deliver within days
4. Using an unapproved system: ZATCA publishes a list of approved providers
5. Not training staff: your accountant must know
6. Separating paper and electronic invoices: ZATCA expects all invoices electronic
7. Not testing Sandbox: causes production failures
8. Skipping backups: losing 6 years of invoices = disaster

Penalties

Violation	Fine
Failing to issue an e-invoice	SAR 1,000 / invoice
Editing an invoice after issuing	SAR 5,000
Failing to retain invoices	SAR 50,000
Missing Phase 2 (when required)	SAR 10,000–50,000 + business suspension
Using an unapproved system	SAR 5,000–25,000
Not providing an invoice on request	SAR 1,000–10,000

Fines stack. 100 non-compliant invoices = SAR 100,000.

Connecting ZATCA to your store

WooCommerce

1. Install the ZATCA E-Invoicing plugin
2. Upload your CSID certificate
3. Connect to Sandbox first
4. Test 10–20 invoices
5. Switch to Production
6. Monitor for 48 hours

Salla

1. Open store settings
2. ZATCA → Enable
3. Upload required documents
4. Salla handles the rest

Custom store

Use Wafeq, Fatoorah API, or ClearTax. Documentation available.

What if you're late?

1. Register today on the ZATCA portal
2. Pick a tech solution (Salla / plugin / provider)
3. Start issuing Phase 1 invoices immediately
4. Register for Phase 2 at least 60 days before your deadline
5. Get advice from an accountant or approved provider if unsure
6. Consult a tax lawyer if you have past violations

Extra tips

• Use Wafeq or Qoyod for accounting + ZATCA (native integration)
• Subscribe to PaaS instead of building in-house if you're SMB
• Review invoices monthly to confirm compliance
• Keep digital certificates in a safe place
• Attend free ZATCA workshops

Bottom line

ZATCA isn't an obstacle, it's an opportunity to clean up your accounting. The tools exist at reasonable prices. Our team connects any store with ZATCA Phases 1 and 2 and ensures full compliance before launch, no fines, no headaches. For existing stores, we offer a free compliance audit. WhatsApp us.