Compliance
ZATCA Phase 2: a practical readiness guide for SMEs
What integration means for your business, how waves are announced, and the steps to take before your deadline.
By Noura Al-Otaibi
Head of Compliance · · 6 min read
Phase 2 of the e-invoicing regulation moves businesses from simply generating electronic invoices to integrating directly with ZATCA's Fatoora platform. For many small and mid-sized companies, the change is less about new paperwork and more about systems: your invoicing software must now talk to ZATCA in real time.
How integration waves work
ZATCA rolls out Phase 2 in waves, selecting taxpayers based on their VAT-subject revenue and notifying them in advance of their integration date. Once notified, you have a fixed window to connect your solution. Keep an eye on official ZATCA announcements and your registered email.
What changes for standard and simplified invoices
- Standard (B2B) tax invoices must be cleared by ZATCA before you share them with the buyer.
- Simplified (B2C) invoices must be reported to ZATCA within 24 hours of issue.
- Every invoice carries a cryptographic stamp and a QR code.
Five steps to take now
- 1Confirm your VAT registration details are accurate and consistent.
- 2List every branch, till and device that issues invoices.
- 3Check that your software supports UBL 2.1 XML, signing and clearance.
- 4Clean up customer master data, especially buyer VAT numbers for B2B.
- 5Test in the simulation environment before your go-live date.
This article is a general guide, not legal or tax advice. Always refer to official ZATCA guidance for your specific obligations.