Facility owners often wonder about how to register for e-invoicing, and some might think it requires submitting a separate request to obtain it, but implementing e-invoicing in Saudi Arabia is linked to the phase in which the facility falls.

In Phase One – Generation and Retention, the facility is obligated to issue and store invoices electronically using a compliant billing system. As for the facilities that have been notified to transition to Phase Two – Integration, they are required to integrate their billing system with the "Fatoora" platform affiliated with the Zakat, Tax and Customs Authority (ZATCA), in addition to configuring the invoice generation units or devices they use.

If you are learning about e-invoicing from the beginning, you can first check the E-Invoicing Guide in Saudi Arabia to learn about the types of invoices and the requirements associated with each phase.

What is the Electronic Invoice?

An electronic invoice is a document generated and stored electronically in a structured format using an electronic system, containing the data and elements required for tax invoices.

A manually written invoice or a scanned copy of a paper invoice is not considered an electronic invoice according to the definition of the Zakat, Tax and Customs Authority. Electronic invoices are mainly divided into two types: the tax invoice and the simplified tax invoice.

To see the differences between the two types and the accounting requirements for each, you can review the Tax Invoice Guide in Saudi Arabia.

Do You Need to Register for E-Invoicing Separately?

There is no standardized process called "E-Invoicing Registration" applied in the same way to all facilities, as the procedures differ based on the facility's status and the phase it is subject to.

If the facility is in Phase One, it is sufficient to use a compliant electronic billing system to issue and store invoices electronically, such as a Point of Sale System.

However, if the facility receives a notification regarding the implementation date of Phase Two, it must integrate its billing solution with the "Fatoora" platform and configure the invoice generation units used. Phase Two is implemented gradually, as the Authority clarifies that it notifies the targeted taxpayer at least six months before the integration date.

You can learn the details of these requirements through the Phase Two of E-Invoicing Guide.

How to Register for E-Invoicing Step by Step

If your facility is among the facilities targeted for the integration phase, the practical procedure starts with preparing the facility's data and ends with operating and testing the system.

1. Verify the Facility's Tax Status

Start by verifying your facility's data registered with the Zakat, Tax and Customs Authority, and ensure the accuracy of the tax registration data and the account details used to access the Authority's services.

It is also important to ensure that a notification has reached the facility regarding its inclusion in one of the Phase Two groups, because the integration process is implemented gradually and is not applied on a single date for all facilities.

If you want to review your tax status before setting up the system, you can refer to the Value Added Tax (VAT) Guide in Saudi Arabia.

2. Choose a Compliant Electronic Billing System

You should rely on an electronic solution capable of generating invoices according to the format and technical requirements set by the Authority.

The system provider is not required to be listed in the indicative list of solution providers; ZATCA clarifies that the taxpayer can use any service provider, provided that the system actually used meets the e-invoicing requirements. Moreover, the published list of solution providers is of an indicative nature.

You can check out a Point of Sale System Solution that combines sales, invoice management, inventory, and accounting functions.

3. Configure the Facility's Data within the System

Before starting to issue invoices, make sure to enter the basic information accurately, most notably:

• Facility Name.
• Tax Identification Number (TIN).
• Branch Information.
• Address.
• Products or Services Data.
• Value Added Tax (VAT) Rates.
• Customer Data.
• Invoice Numbering and Sequencing.
• Invoices and Notifications Settings.

Inaccurate data within the system may cause errors to appear in the invoices that are sent or reported.

To learn about the most prominent data that an invoice should contain, you can refer to the Tax Invoice Guide.

4. Access the Fatoora Platform

When starting the integration procedures, the taxpayer can access the Fatoora platform using their account credentials with the Authority. According to the Fatoora platform guide, login is done using the TIN or the email registered with ZATCA, along with the password.

After logging in, the tools designated for setting up invoice generation solutions and devices and managing previously integrated generation units will appear.

5. Select "Onboard New Solution Unit/Device"

After accessing the Fatoora platform, select Onboard New Solution Unit/Device to start setting up the e-invoice generation unit used by the facility.

The unit may represent a system or device dedicated to issuing invoices according to the technical infrastructure adopted within the facility, so it is necessary to inventory the generation units, branches, and point of sale devices before initiating the integration.

6. Generate an OTP Code

The taxpayer determines the number of required OTP verification codes based on the number of invoice generation units they wish to configure. The platform also allows generating codes for multiple units within the same procedure.

The OTP code remains valid for only one hour starting from the moment of its generation, so it must be entered into the billing system or generation unit within the specified validity period.

7. Enter the OTP into the Billing System

Generating the code through the Fatoora platform does not mean the configuration is complete; rather, the OTP must be entered into the invoice generation unit or follow the procedure provided by the system provider to complete the unit setup.

Here comes the role of the software provider or the technical team in the facility; as the Authority indicates that implementing a large part of the technical requirements is usually done through electronic system providers or internal technical teams.

If the system is used, it is preferable to implement the integration procedures in cooperation with the system's team, while ensuring testing of invoices, returns, and data before moving to actual operation.

To learn about the solution: Accounting, Point of Sale, and Billing System.

8. Test Invoices Before Full Operation

After finishing the system setup, perform tests on the actual business cycle, and do not just settle for confirming the device registration success.

Test:

• Tax Invoice.
• Simplified Tax Invoice.
• QR Code.
• Credit Note.
• Debit Note.
• Return Operations.
• Tax Calculation.
• Customer Data.
• Required Data Formatting.
• Document Acceptance or Rejection Cases.

The Fatoora platform also displays statistics for the submitted documents, showing what was accepted, what was accepted with warnings, and what was rejected, which helps in detecting and tracking integration errors.

What is the Difference Between Registration in Phase One and Phase Two?

Phase	Main Requirement
Phase One	Issuing and storing invoices electronically using a compliant system
Phase Two	Integrating the billing system with the Fatoora platform, configuring generation units, and issuing invoices according to the specified format

Phase One launched on December 4, 2021, while Phase Two started gradually on January 1, 2023, and is still being applied to groups notified by the Authority.

For more details on the integration requirements, you can refer to the Integration Guide with Fatoora Platform.

Errors to Avoid During Registration and Integration

There is a set of errors that may lead to problems during the configuration and integration process, most notably:

• Postponing preparation until close to the integration date.
• Relying on software that cannot meet the technical requirements.
• Registering inaccurate tax data.
• Generating an OTP and then not using it within its validity period.
• Overlooking some invoice generation devices or units.
• Not testing returns and notes.
• Believing that possessing a PDF file alone means the invoice is electronic and compliant.
• Neglecting to track rejected invoices or alerts and warnings.

Most importantly is testing the actual sales cycle within the facility, starting from creating the invoice up to knowing its status within the system.

You can also check out the Guide to Choosing Accounting Software Compliant with E-Invoicing before making the decision to replace your currently used system.

Frequently Asked Questions About How to Register for E-Invoicing

How do I register for e-invoicing?

If your facility is within the generation and retention phase, use a compliant electronic billing system. But if a notification has been issued to the facility regarding Phase Two, it is required to log into the Fatoora platform, configure the invoice generation units, and integrate the used system with the platform.

How do I log into the Fatoora platform?

The Fatoora platform can be accessed via the taxpayer's data registered with the Zakat, Tax and Customs Authority, including the TIN or the registered email and password.

What is the OTP code on the Fatoora platform?

OTP is a code generated when setting up a new generation unit, then it is used within the invoice generation unit or system to complete the configuration. According to the Authority's guide, its validity lasts for one hour.

Do all cashier devices need configuration?

During Phase Two, the e-invoice generation units that are part of the used solution must be configured, and the Fatoora platform allows generating OTP codes for a single unit or multiple units. Therefore, the actual used generation devices and units should be inventoried in coordination with the system provider before implementing the integration.

Do I have to choose a software listed in ZATCA's providers list?

The service provider is not required to be listed in the indicative list; the main criterion specified by the Authority is that the system used by the taxpayer must be compliant with the e-invoicing requirements.

Is a PDF file considered an electronic invoice?

The existence of a PDF file by itself does not mean the fulfillment of e-invoicing requirements; the invoice must be issued and stored electronically in a structured format through an electronic system, and a manual invoice or a scanned copy is not considered an electronic invoice.

Conclusion

Determining how to register for e-invoicing begins with knowing which phase applies to your facility. In Phase One, the focus is on generating and storing invoices via a compliant electronic system, while Phase Two requires integrating the billing solution with the Fatoora platform, configuring the generation units, and testing the transmission and processing of invoices.

If your facility is approaching the integration date, it is better to start by reviewing its tax data, inventorying branches and generation devices, choosing a compliant system, and then executing the configuration and tests before the mandatory date arrives.

The Accounting and Point of Sale System Solutions provide management for accounts, sales, invoices, and inventory within an interconnected ecosystem, with functions that support e-invoicing requirements.

You can Register and Get a Free Trial or Book Your Consultation to evaluate your current billing system and experience the invoice generation, returns, and integration cycle before actual operation.