ZATCA e-invoicing readiness checklist

Electronic invoices generated from a compliant solution (in effect from 4 December 2021).

• Invoices and credit/debit notes are generated by an electronic invoicing solution, not by hand, Word or spreadsheets.
• Issued invoices cannot be edited or deleted; corrections are made with credit or debit notes.
• The solution distinguishes standard tax invoices (B2B) from simplified tax invoices (B2C).
• Staff know that invoices must not be issued outside the system.

Connection to ZATCA's FATOORA platform, rolled out from 1 January 2023 in waves of taxpayer groups notified by ZATCA.

• You know whether ZATCA has notified your business of its integration wave, and the date.
• Each invoicing solution or device is onboarded through the FATOORA portal.
• Standard (B2B) tax invoices are sent to ZATCA for clearance before being shared with the buyer.
• Simplified (B2C) invoices are reported to ZATCA within 24 hours of being issued.
• Invoices carry a cryptographic stamp generated by the onboarded solution.
• Your software provider has confirmed in writing that the solution supports Phase 2 integration.

What each invoice contains and the format it is produced in.

• Invoices are produced in XML (UBL 2.1) format.
• Invoices carry a QR code generated by the solution.
• Tax invoices include Arabic text; English or other languages appear alongside where needed.
• Seller and buyer details, including VAT registration numbers, are captured correctly for standard (B2B) invoices.
• Customer master data (names, addresses, VAT numbers) is complete and checked for B2B customers.
• Each line shows quantity, unit price, VAT rate and VAT amount, with totals that reconcile.
• Zero-rated and exempt items are set up with the correct codes, reviewed with your tax adviser.

Running and checking the process day to day.

• Test invoices, credit notes and debit notes have been validated before go-live, using the test tools your provider or ZATCA offers.
• Someone is responsible for monitoring rejected or warning responses and fixing them.
• There is a plan for issuing and later reporting invoices if the internet connection or system is down.
• All branches, POS terminals and e-commerce channels are covered, not only head office.
• Invoices and their XML files are stored securely and can be retrieved for the required retention period.
• Finance and sales staff are trained on credit notes, returns and the new invoice flow.