The two phases
- Phase 1 (Generation): since 4 December 2021. Invoices must come from a compliant electronic solution — no handwritten, word-processor or spreadsheet invoices.
- Phase 2 (Integration): since 1 January 2023, in waves. Your system connects to FATOORA and sends it your invoices.
How waves are selected
ZATCA selects each wave by taxable revenue in specific years and notifies targeted businesses at least six months before their integration date. Thresholds drop with each wave, bringing in smaller businesses.
What changes in Phase 2
- B2B tax invoices are cleared by the platform before reaching the customer
- Simplified (B2C) invoices are reported within 24 hours
- Specific fields, format and QR code on every invoice
How to prepare
- Confirm your system supports Phase 2 (or choose a compliant one such as Daftra)
- Clean customer data: name, VAT number, address
- Test the integration well before the date
- Train your team on invoices, credit and debit notes
Key takeaways
- Phase 2 rolls out in waves by revenue
- Notice comes at least 6 months ahead
- Start preparing before the notice arrives
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