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🇸🇦 Saudi Arabia - E-Invoicing Specifications (ZATCA e-Invoicing)

Status: 🔴 Mandatory Clearance | Active Authority: ZATCA (Zakat, Tax and Customs Authority) Platform: FATOORA (e-Invoicing Platform)

1. Context & Overview

Saudi Arabia has implemented one of the most advanced e-invoicing systems globally. The phased mandate began in December 2021 with Phase 1 (generation and storage) and Phase 2 (clearance and integration) fully active. The system follows a Clearance Model requiring ZATCA validation.

DateScopeObligation
Dec 1, 2021Phase 1Generation and storage mandatory
Dec 1, 2023Phase 2Clearance mandatory for B2B
Jan 1, 2025B2C IntegrationConsumer QR verification
OngoingAll businessesContinuous ZATCA compliance

2. Technical Workflow (Clearance Model)

flowchart TD
    S["Invoicerr (Supplier)"] -->|1. Generate XML| X[XML Document]
    X -->|2. Apply QR Code| QR[ZATCA QR Code]
    QR -->|3. Sign Invoice| Cert[Digital Certificate]
    Cert -->|4. Submit to ZATCA| ZATCA[ZATCA Platform]
    
    ZATCA -->|5. Validation| V[Schema + Rules]
    V -->|6. Clearance Check| ZATCA
    
    alt B2B / B2G
    ZATCA -->|7. Return ACK + UUID| S
    S -->|8. Send to Client| C
    else B2C
    ZATCA -->|7b. Store & Report| S
    S -->|8b. Print QR for Customer| C
    end
    
    subgraph "Integration"
    S -.->|XML/API| ERP[ERP Systems]
    end

🧱 Key Components

  1. UUID: Unique identifier for each invoice
  2. QR Code: ZATCA-compliant with specific data fields
  3. Digital Certificate: ZATCA-approved for signing
  4. Invoice Type: Simplified (B2C) or Standard (B2B)
  5. Clearance: Real-time validation for B2B/B2G

3. Data Standards & Formats

A. Required Format

  • XML Format: UBL 2.1 with ZATCA extensions
  • Encoding: UTF-8
  • Digital Signature: X.509 certificate
  • QR Code: PNG format with specific fields

B. Document Types

TypeCodeDescription
Standard0100000B2B/B2G invoices
Simplified0200000B2C consumer invoices

C. Critical Data Fields

  • TIN: Tax ID (15 digits)
  • VAT Rate: 15% standard
  • UUID: 128-bit unique ID
  • QR Fields: Seller name, TIN, VAT total, timestamp, hash
  • Invoice Date/Time: ISO 8601 format

4. Business Model & Compliance

A. Workflow

  1. Registration: Obtain ZATCA certificate
  2. XML Generation: Create UBL 2.1 document
  3. QR Code: Generate compliant QR
  4. Signing: Apply digital certificate
  5. Submission: Send to ZATCA (B2B/B2G)
  6. Delivery: Send to buyer with clearance

B. QR Code Requirements

  • Dimensions: Minimum 2cm x 2cm
  • Data: Encoded in Base64
  • Fields: 12 mandatory elements
  • Scannable: Must work with ZATCA app

C. Archiving

  • Retention: 6 years
  • Format: Original XML
  • Location: Saudi Arabia

5. Implementation Checklist

  • ZATCA Certificate: Obtain digital certificate
  • UBL 2.1 Engine: Build XML generator
  • QR Code Generator: Implement ZATCA QR format
  • Signature Integration: Implement digital signing
  • ZATCA API: Connect to clearance platform
  • Document Types: Support Standard and Simplified
  • B2B Clearance: Implement real-time validation
  • B2C Reporting: Handle consumer invoice rules

6. Resources