How to Register for E-Invoicing in Saudi Arabia Step by Step

Business owners search for how to register for e-invoicing, sometimes believing that the process requires submitting a separate application to obtain electronic invoices. However, implementation in Saudi Arabia depends on the phase to which the business is subject.

In the first phase – generation and storage, the requirement is to generate and store invoices electronically through a compliant invoicing system. As for businesses that have been notified of their inclusion in the second phase – integration, the business must integrate its invoicing system with the Zakat, Tax and Customs Authority’s “Fatoora” Platform and configure the invoice-generating units or devices it uses.

If you are starting from the beginning, you can first review the electronic invoicing in Saudi Arabia guide to understand the types of invoices and the requirements of each phase.

What Is an Electronic Invoice?

An electronic invoice is an invoice generated and stored in a structured electronic format through an electronic system, and it contains the required tax invoice elements.

A handwritten invoice or a scanned image of a paper invoice is not considered an electronic invoice according to the definition of the Zakat, Tax and Customs Authority. There are two main types: the tax invoice and the simplified tax invoice.

To learn about the differences and accounting requirements for each type, review the tax invoice in Saudi Arabia guide.

Do You Need to Register for E-Invoicing Separately?

There is no single procedure called “registration for e-invoicing” that applies in the same way to all businesses. The steps vary according to the business’s status and the implementation phase.

If the business is included in the first phase, it needs to use a compliant electronic invoicing system and generate and store invoices electronically, such as the DigitalPro system.

When a business is notified of the date on which the second phase applies to it, it must integrate its invoicing solution with the “Fatoora” Platform and configure the invoice-generating units it uses. The second phase is implemented gradually, and the Authority explains that it notifies the targeted taxpayer at least six months before the integration date.

You can learn the details of this phase in the second phase of e-invoicing guide.

How to Register for E-Invoicing Step by Step

If your business is targeted for the integration phase, this is the practical overview of the process, from preparing the business to operating the system.

1. Verify the Business’s Tax Status

Start by reviewing the business’s information with the Zakat, Tax and Customs Authority and verifying the accuracy of the tax registration information and the account used to access the Authority’s services.

You must also verify whether the business has received a notification of inclusion in one of the second-phase groups, because integration is implemented gradually and not on a single date for all businesses.

If you need to review the tax itself before configuring the system, you can read the Value Added Tax in Saudi Arabia guide.

2. Choose a Compliant Electronic Invoicing System

You must use an electronic solution capable of generating invoices in accordance with the format and technical requirements specified by the Authority.

The system provider is not required to be included in the indicative list of solution providers. ZATCA explains that the taxpayer may use any service provider, provided that the system actually being used complies with the e-invoicing requirements. The published list of solution providers is also an indicative list.

You can review the DigitalPro accounting and point-of-sale system, which Aamal Digital offers as a solution that supports e-invoicing alongside accounting, sales, inventory and point-of-sale functions.

3. Configure the Business’s Information in the System

Before generating invoices, make sure that the basic information is entered correctly, including:

• Business name.
• Tax identification number.
• Branch information.
• Address.
• Product or service information.
• Value Added Tax rates.
• Customers.
• Invoice sequence.
• Invoice and notification settings.

Incorrect information in the system may cause errors to appear in submitted or reported invoices.

To learn about the most important information required in an invoice, you can refer to the tax invoice guide.

4. Log In to the Fatoora Platform

When moving to the integration phase, the taxpayer can log in to the Fatoora Platform using their account credentials with the Authority. The Fatoora Platform guide explains that users log in using the distinctive number or the email address registered with ZATCA and their password.

After logging in, the taxpayer can access the tools for configuring invoicing solutions and devices and managing units that have already been integrated.

5. Select “Onboard New Solution Unit/Device”

After logging in to the Fatoora Platform, select Onboard New Solution Unit/Device to begin configuring the electronic invoice-generating unit used by the business.

A unit may refer to a system or device that generates invoices according to the technical infrastructure used by the business. Therefore, invoice-generating units, branches and point-of-sale devices must be identified before beginning the integration process.

6. Generate an OTP

The taxpayer specifies the number of OTP verification codes required according to the number of invoice-generating units to be configured. The platform can generate codes for multiple units in the same process.

The OTP remains valid for only one hour from the time it is generated, so it must be used in the invoicing system or invoice-generating unit within this period.

7. Enter the OTP in the Invoicing System

The process does not end once the code has been generated through the Fatoora Platform. The OTP must be entered into the invoice-generating unit or through the procedure provided by your system provider to complete the configuration process.

This is where the software provider or technical team plays a role. The Authority explains that many technical requirements are usually implemented through electronic system providers or the business’s internal technical teams.

If you use DigitalPro, it is best to implement the integration process with assistance from the system’s team and ensure that invoices, returns and information are tested before actual operation begins.

Learn about the system: DigitalPro for accounting, point of sale and invoicing.

8. Test Invoices Before Full Operation

After configuring the system, test the actual workflow and do not rely solely on successful device registration.

Test:

• The tax invoice.
• The simplified tax invoice.
• QR Code.
• The credit note.
• The debit note.
• Returns.
• Tax.
• Customer information.
• The required data format.
• Document acceptance or rejection statuses.

The Fatoora Platform provides statistics for submitted documents, showing accepted documents, documents accepted with warnings and rejected documents, which helps users monitor integration errors.

What Is the Difference Between Registration in the First and Second Phases?

The first phase began on December 4, 2021, while the second phase began gradually on January 1, 2023 and continues through groups notified by the Authority.

To learn more about the integration requirements, review the integration with the Fatoora Platform guide.

Errors to Avoid During Registration and Integration

The most common errors that may cause problems during configuration include:

• Waiting until the integration date to begin preparations.
• Using software that is unable to meet the technical requirements.
• Entering incorrect tax information.
• Generating an OTP and failing to use it within its validity period.
• Overlooking some invoice-generating units or devices.
• Failing to test returns and notifications.
• Considering a PDF file alone as proof that an invoice is electronically compliant.
• Failing to monitor rejected invoice statuses or warnings.

Most importantly, test the actual sales cycle within your business, from creating the invoice until its status appears in the system.

You can also read the guide to choosing accounting software compatible with e-invoicing before changing your current system.

Frequently Asked Questions About How to Register for E-Invoicing

How Do I Register for E-Invoicing?

If you are in the generation and storage phase, use a compliant electronic invoicing system. If your business has been notified of its inclusion in the second phase, you need to log in to the Fatoora Platform, configure the invoice-generating units and integrate your system with the platform.

How Do I Log In to the Fatoora Platform?

You can log in to the Fatoora Platform using the taxpayer’s information registered with the Zakat, Tax and Customs Authority, such as the distinctive number or registered email address and password.

What Is an OTP on the Fatoora Platform?

It is a code generated while configuring a new invoice-generating unit and entered into the invoice-generating unit or system to complete the configuration process. According to the Authority’s guide, it remains valid for one hour.

Do All Cashier Devices Need to Be Configured?

In the second phase, the electronic invoice-generating units used within the solution must be configured. The Fatoora Platform allows OTPs to be generated for one or multiple units. Therefore, the actual invoice-generating devices and units must be identified with the system provider before integration.

Must I Choose Software Included in ZATCA’s Provider List?

The service provider is not required to be included in the indicative list. According to the Authority, the main criterion is that the system used by the taxpayer complies with the e-invoicing requirements.

Is a PDF File Considered an Electronic Invoice?

The mere existence of a PDF file does not determine compliance. An electronic invoice must be generated and stored in a structured electronic format through an electronic system, and a handwritten or scanned invoice is not considered an electronic invoice.

Conclusion

Understanding how to register for e-invoicing begins with identifying the phase to which your business is subject. The first phase depends on generating and storing invoices through a compliant electronic system, while the second phase requires integrating the solution with the Fatoora Platform, configuring the invoice-generating units and testing the process of submitting and processing invoices.

If your business is preparing for integration, begin by reviewing the tax information, identifying branches and invoice-generating devices, and choosing a compliant system. Then complete the configuration and testing before the mandatory implementation date.

Aamal Digital offers DigitalPro to manage accounting, points of sale, invoices and inventory within an integrated system, with functions related to e-invoicing.

You can request a free trial or contact Aamal Digital to evaluate your current invoicing system and test the invoice generation, return and integration cycle before actual operation.