The short answer
ZATCA e-invoicing Phase 2 in Saudi Arabia requires a business to connect its certified e-invoicing solution to the FATOORA platform: tax invoices are submitted in XML to be cleared before they are shared with the buyer, and simplified invoices are stamped and reported within 24 hours. ZATCA notifies each wave at least six months before its date. Injaz AI by Injaz Digital connects your sales and systems to that solution so nobody enters an invoice by hand.
Accountants and business owners ask: “we got our wave notice, what exactly do we need to do?” and “how do we make invoices come out of the sales system by themselves?” The answer has two parts: what ZATCA requires of the e-invoicing solution, and what can be automated around it so the finance team gets relief.
What is Phase 2 of e-invoicing?
Phase 2 is the integration phase, applied since 1 January 2023 in waves. Before it, Phase 1, the generation phase, has applied since 4 December 2021. ZATCA says it notifies the targeted businesses in each wave at least six months before their integration date.
What is the difference between clearance and reporting?
A tax invoice goes through clearance before it reaches the buyer, and a simplified invoice is reported after it is issued:
| Tax invoice (mostly B2B) | Simplified invoice (mostly B2C) | |
|---|---|---|
| Model | Clearance | Reporting |
| When it goes to FATOORA | Before it is shared with the buyer | Within 24 hours of issuance |
| Format sent | XML through APIs | XML through APIs |
| Stamp and QR code | Added by the platform on clearance, which returns the invoice | Added by your solution before sharing |
What is required of your e-invoicing solution?
ZATCA's detailed guideline requires invoices to be issued from a compliant e-invoicing solution onboarded to FATOORA, and its main requirements are:
- Issuing the invoice in XML, or PDF/A-3 with embedded XML.
- Submitting tax invoices in XML to the platform for clearance, which returns them stamped with a QR code.
- Stamping the simplified invoice with the stamp certificate ZATCA issues, adding a compliant QR code, and sharing it with the buyer immediately.
- Reporting the simplified invoice in XML within 24 hours.
Where does the finance team lose time?
Time is lost when the e-invoicing solution is isolated from your other systems: an order is recorded in the sales system or store, then re-entered in invoicing, then rejected invoices are chased by hand, then reports are reconciled at month end. Every manual copy is a chance for an error and a delay.
This is the time Injaz AI gives back to the finance team by connecting sales, accounting and the invoicing solution.
How do you automate the connections around your e-invoicing solution?
You automate it by connecting the source of the order straight to the e-invoicing solution, then tracking the result automatically:
- Identify where invoices come from: the sales system, point of sale, online store or CRM.
- Connect that source to the e-invoicing solution through its APIs, so the invoice is created from the order data itself without re-entry.
- Capture the platform's response for each invoice: cleared, or rejected with the reason.
- Send an instant alert to the responsible team member on any rejection, with the invoice and the reason.
- Compile a daily summary for the finance team: invoices issued, rejected, and any past the 24-hour mark.
This is what Injaz AI by Injaz Digital offers: we don't replace your certified e-invoicing solution; we connect it to your existing systems and build the alerts and reports around it, with human review where it matters and a log of every step. Double entry disappears, and the finance team learns of a problem the moment it happens, not at month end.
Meeting ZATCA's requirements is the responsibility of the business and its certified e-invoicing solution. Check ZATCA's guideline and your wave notice, and consult your tax adviser on your case.
Why choose Injaz AI by Injaz Digital to automate your business?
- We connect the systems you already have as they are: your CRM, accounting, spreadsheets, WhatsApp and invoicing, without replacing them.
- We automate repetitive work end to end, so your team is freed from manual entry, reports and moving data around.
- Human review where it matters, a log of every step, and accounts and permissions in your name.
- From Injaz Digital: over 15 years in the Arab market, with offices in Cairo, Dubai and Riyadh.
FAQ
How do I know whether my business is covered by Phase 2?
ZATCA sets the criteria for each wave and notifies targeted businesses at least six months before their integration date, so follow its notices and the FATOORA portal.
Do you replace our invoicing system?
No. Injaz AI connects your certified e-invoicing solution to your other systems and automates the alerts and reports around it.
Can a simplified invoice be sent to the customer on WhatsApp?
ZATCA's guideline says a simplified invoice is shared printed, or in its electronic format or any human-readable format if the parties agree.
What happens if an invoice is rejected?
The platform responds with the reason, and it's best that an instant alert reaches the responsible team member to fix it, rather than finding it at month-end reconciliation.