ZATCA e-invoicing for online stores: what you must do

If your online store in Saudi Arabia is registered for VAT, every sale needs an electronic invoice that meets the rules of the Zakat, Tax and Customs Authority (ZATCA), and at some point your invoicing has to be connected to ZATCA's Fatoora platform. This guide explains what that means for a store, how the integration waves work and how to check that you are ready. It is based on ZATCA's own publications as of October 2026 and is general information, not tax advice.

The two phases

• Phase 1, generation (since 4 December 2021): all resident taxpayers must generate their invoices with a compliant electronic solution. A paper invoice that is scanned or copied does not count as an e-invoice (ZATCA).
• Phase 2, integration (since 1 January 2023, in waves): your e-invoicing solution connects to Fatoora. Invoices then carry a cryptographic stamp and a QR code, and ZATCA receives them, before you share them or shortly after, depending on the invoice type.

Which wave is your store in?

ZATCA brings taxpayers into phase 2 in waves, based on their revenue subject to VAT, and informs each targeted taxpayer directly at least six months before its integration date. The latest waves reach small businesses:

• Wave 24: revenue subject to VAT above SAR 375,000 in 2022, 2023 or 2024; integration by 30 June 2026 (ZATCA).
• Wave 25: revenue subject to VAT above SAR 187,500 in 2022, 2023, 2024 or 2025; integration by 1 February 2027 (ZATCA).

If ZATCA has notified you, the date in that notification is your deadline. If your revenue is close to a threshold, check the figures for each year with your accountant.

What changes for an online store

An online store that sells to consumers issues simplified tax invoices. ZATCA's detailed guideline even uses an online pharmacy as an example (ZATCA, detailed guideline). In phase 2:

• Simplified invoices (B2C) get a cryptographic stamp and a QR code from your e-invoicing solution, are shared with the customer and are reported to Fatoora within 24 hours.
• Tax invoices (B2B), for business customers, must be cleared by Fatoora before you share them with the buyer.
• Returns and refunds need a credit note that refers to the original invoice. An issued invoice may not be edited or deleted: to cancel one, you issue a credit note and, if needed, a new invoice.
• Every channel counts: orders from your website, your app and your shop counter all need compliant invoices, so connect each of them.

Checklist: is your store ready?

1. Check your wave. Look up your revenue subject to VAT for each year since 2022 and compare it with the wave thresholds, or check the notification from ZATCA.
2. Check your platform. Zid offers a free Fatoora link for phase 2 from its dashboard, Salla has its own ZATCA link, and Shopify stores use an app or their accounting software. Custom stores usually connect through an accounting or ERP system or an e-invoicing provider.
3. Get the VAT right per product. Most goods carry 15% VAT, but some supplies are zero-rated or exempt. A wrong tax setting ends up on every invoice.
4. Test a return. Place a test order, refund it and check that a credit note is created with a reference to the original invoice.
5. Connect your solution. Linking a store or device usually needs a one-time code that you generate in the Fatoora portal. The guides of Zid and Salla walk you through it.
6. Collect VAT numbers from business customers. If you sell to companies, make sure your checkout can ask for their VAT number so the right invoice type is issued.

Custom stores and integrations

If your store is custom-built or connected to an ERP, the e-invoicing usually runs in your accounting or ERP system or through an e-invoicing provider, and the store passes on every order, refund and customer VAT number. When we build a store for the Saudi market, we make sure it passes this data to the e-invoicing solution you choose. See how we build online stores or compare Salla, Zid and Shopify.