In short: Phase 2 (the “integration phase”) means your POS must send every invoice to ZATCA electronically. To set it up you need a Phase 2 ready POS, your VAT and CR details, and an OTP from the FATOORA portal for each counter. The POS uses the OTP to get a certificate from ZATCA, passes a few test invoices, and then reports or clears every invoice automatically.
What is ZATCA Phase 2?
Saudi Arabia’s e-invoicing (FATOORA) rules came in two phases. Phase 1, the generation phase, started on 4 December 2021: invoices must be created by a compliant electronic system (no handwritten or Excel invoices) and simplified invoices must carry a QR code. Phase 2, the integration phase, started on 1 January 2023 and is rolled out in waves: your system must be connected to ZATCA’s FATOORA platform and share each invoice with ZATCA in a fixed XML format.
In Phase 2, two kinds of invoice are handled differently:
| Invoice type | Typical use | What happens in Phase 2 |
|---|---|---|
| Simplified tax invoice (B2C) | Receipts for walk-in customers at a baqala, supermarket or restaurant | Reported to ZATCA within 24 hours of the sale. You give the customer the receipt immediately. |
| Standard tax invoice (B2B) | Invoices to another VAT-registered business, e.g. a company buying in bulk | Cleared by ZATCA first; only the cleared invoice may be shared with the buyer. |
| Credit and debit notes | Returns, refunds and corrections | Follow the same rule as the invoice they correct, and must refer to it. |
Who must integrate, and when?
ZATCA brings VAT-registered businesses into Phase 2 in waves, starting with the largest by VAT-taxable revenue and moving down to smaller businesses. ZATCA tells each business its wave and integration date by notice (at least six months in advance). If you are VAT registered and have not yet been notified, your wave is likely still coming — prepare now so that changing your POS is not a last-minute rush. Check the current waves and rules on zatca.gov.sa.
Not VAT registered? E-invoicing applies to VAT-registered taxpayers. If you cross the VAT registration threshold, you register for VAT and the e-invoicing rules then apply to you.
Before you start: a checklist
- A Phase 2 ready POS / ERP that can create UBL 2.1 XML, sign invoices with a cryptographic stamp, chain invoices with the previous invoice hash and talk to the FATOORA API. Phase 1 software that only prints a QR code is not enough.
- Login to the FATOORA portal (fatoora.zatca.gov.sa) with your business’s ZATCA account.
- Business details exactly as registered with ZATCA: 15-digit VAT number (starts and ends with 3), CR number, Arabic and English business name, and your national address (building number, street, district, city, postal code).
- A list of every device that issues invoices — each counter, each branch, any waiter tablet that prints bills. Each one is onboarded as its own “unit”.
- Arabic product names or at least Arabic on the invoice — invoices must be in Arabic (other languages may be added).
- Internet at the shop — but billing must not stop when it drops; the POS should keep the invoices and send them later.
Step-by-step: connecting your POS to ZATCA
1. Check your wave and integration date
Look for ZATCA’s notification email or check the FATOORA portal. Write the date down and plan the switch at least a few weeks before it.
2. Make sure your POS is Phase 2 ready
Ask your POS provider directly: “Does your system onboard with an OTP, report simplified invoices and clear standard invoices through the FATOORA API?” If the answer is not a clear yes, change systems before your date.
3. Enter your business details in the POS
VAT number, CR number, Arabic name and national address must match ZATCA’s records exactly. Mistakes here are the most common reason onboarding fails.
4. Generate the OTP in the FATOORA portal
In fatoora.zatca.gov.sa, choose to onboard a new solution unit / device and enter how many units you are onboarding. The portal gives you one-time passwords (OTPs). An OTP is only valid for a short time (about an hour), so generate it when your POS provider is ready to use it.
5. Onboard each counter (compliance CSID)
The POS creates a private key for the counter and a certificate signing request (CSR) containing your VAT number, branch and device details, and sends it to ZATCA with the OTP. ZATCA returns a compliance CSID (a certificate used for testing).
6. Pass the compliance checks
The POS sends sample documents — for example a simplified invoice, credit note and debit note, and the standard versions if you issue B2B invoices — and ZATCA checks that their XML, signature, hash and QR code are valid.
7. Get the production CSID and go live
Once the checks pass, the POS requests the production CSID. From this moment each invoice is signed with your cryptographic stamp, linked to the previous invoice by its hash and counter, and sent to ZATCA. The receipt prints the Phase 2 QR code, which also contains the invoice hash and the digital signature.
8. Monitor every day
Check the ZATCA status screen in your POS: invoices should show as reported or cleared. Rejected invoices must be corrected (usually with a credit note and a new invoice) — not deleted. Invoices that could not be sent because the internet was down must be sent as soon as possible.
Common mistakes to avoid
- Onboarding one counter and using the same certificate on several tills — each device needs its own onboarding.
- Business name or address in the POS not matching ZATCA’s records.
- Deleting or editing an invoice after it was issued. Corrections are made with credit or debit notes.
- Giving a B2B customer a standard invoice before ZATCA cleared it.
- Leaving the ZATCA status screen unchecked for weeks — rejected invoices pile up.
- Forgetting that the certificate (CSID) has an expiry date and must be renewed through the portal with a new OTP.
How SiztOS handles Phase 2
SiztOS is a POS and ERP built for shops in Saudi Arabia, with ZATCA Phase 2 built in:
- We do the onboarding with you. You log in to the FATOORA portal and generate the OTP; our team enters your details, onboards each counter, passes the compliance checks and gets your production certificate.
- Every sale is signed and sent to ZATCA as UBL 2.1 XML: simplified invoices are reported and standard tax invoices are cleared.
- 80 mm receipts and A4 tax invoices in Arabic and English with the ZATCA QR code.
- ZATCA Status screen showing every invoice as reported, cleared, rejected or not yet sent, with the ZATCA response.
- Billing never stops when the internet drops — the shop server keeps every invoice, and unsent invoices are sent from the ZATCA screen once you are back online.
- Support in Malayalam, English and Arabic.
This guide explains the process in plain language and is not legal or tax advice. ZATCA updates its rules and waves — always check zatca.gov.sa or your tax adviser for your own case.
Frequently asked questions
What is the difference between ZATCA Phase 1 and Phase 2?
Phase 1 (from 4 December 2021) requires invoices to be generated by an electronic system, with a QR code on simplified invoices. Phase 2 (from 1 January 2023, in waves) also requires the system to be connected to ZATCA’s FATOORA platform and to send every invoice to ZATCA in XML format.
How do I know my Phase 2 date?
ZATCA notifies each business of its wave and integration date in advance. Check your email from ZATCA and the FATOORA portal (fatoora.zatca.gov.sa).
Do I need a separate OTP for each counter?
Yes. Each device or counter that issues invoices is onboarded separately, and each onboarding uses an OTP generated in the FATOORA portal.
Does my shop need internet for Phase 2?
Yes, to send invoices to ZATCA. But simplified invoices may be reported within 24 hours, so a good POS keeps billing offline and sends the invoices when the connection is back.
Can I keep using my old POS that prints a QR code?
Only if it also supports Phase 2 integration (OTP onboarding, XML invoices, cryptographic stamp, reporting and clearance). A Phase 1 QR code alone is not enough once your wave starts.
How long does onboarding take?
With your VAT, CR and address details ready and access to the FATOORA portal, onboarding a counter usually takes less than an hour with SiztOS.
Need ZATCA Phase 2 in your shop?
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