The complete guide to ZATCA Phase 2 and Saudi e-invoicing regulation. ZATCA XML format requirements, Fatoora clearance integration, Saudi VAT compliance and TallyPrime KSA configuration for businesses in Riyadh, Jeddah and across the Kingdom.
ZATCA Phase 2 Saudi e-invoicing regulation mandates real-time integration with ZATCA's Fatoora platform using ZATCA XML format. Every TallyPrime Saudi Arabia implementation must meet these technical requirements for Saudi VAT compliance.
Every ZATCA Phase 2 B2B invoice must carry a cryptographic stamp from a ZATCA-registered cryptographic device (CSID). This is a fundamental Saudi e-invoicing regulation requirement — not optional. TallyPrime Saudi Arabia must integrate with the ZATCA device onboarding API before any live invoice submission.
Saudi e-invoicing regulation requires each ZATCA XML format invoice to carry a globally unique UUID and a hash chain value linking each invoice to the previous one. This creates a tamper-evident sequential invoice chain enabling ZATCA audit trail integrity — a core Saudi VAT compliance control mechanism.
All ZATCA Phase 2 invoices — B2B and B2C — must include a QR code containing encoded invoice data including seller TIN, VAT number, invoice timestamp, total amount and VAT amount. ZATCA XML format QR data must conform to ZATCA's TLV (Tag-Length-Value) encoding specification for Saudi VAT compliance.
B2B invoices under ZATCA Phase 2 Saudi e-invoicing regulation must be submitted to ZATCA's Fatoora Clearance API and receive a ZATCA-issued clearance stamp before delivery to the buyer. ZATCA XML format invoices are base64-encoded and submitted via REST API — TallyPrime must handle real-time clearance responses and error handling.
B2C invoices under Saudi e-invoicing regulation are reported to ZATCA's Reporting API within 24 hours of issuance (or per the latest ZATCA deadline guidance). ZATCA XML format reporting invoices include the same cryptographic and QR requirements as clearance invoices. Saudi VAT compliance requires no exceptions or gaps in reporting.
ZATCA Phase 2 uses UBL 2.1 XML schema with ZATCA-specific extensions for Saudi e-invoicing regulation requirements. Unlike UAE PEPPOL PINT AE, ZATCA XML format is entirely different — requiring separate TallyPrime configuration, schema mapping and API connectivity. Saudi VAT compliance fields differ significantly from UAE VAT compliance requirements.
GCC businesses operating in both markets need separate compliance architectures. UAE FTA e-invoicing and ZATCA Phase 2 Saudi e-invoicing regulation share the goal of structured invoice exchange but differ fundamentally in architecture, ZATCA XML format and Saudi VAT compliance processes.
Our ZATCA Phase 2 advisory covers businesses in Riyadh, Jeddah, Dammam and across all KSA regions — with TallyPrime Saudi Arabia configuration and Saudi VAT compliance advisory delivered remotely from our Dubai office.
The most common questions from businesses in Riyadh, Jeddah and Dubai about ZATCA Phase 2, Saudi e-invoicing regulation, ZATCA XML format requirements and Saudi VAT compliance.
Our advisory team provides ZATCA Phase 2 readiness assessments, TallyPrime Saudi Arabia configuration and Saudi VAT compliance advisory for businesses in Riyadh, Jeddah and across KSA.