ZATCA e-invoices (Fatoora) for Shopify stores in Saudi Arabia

Saudi Arabia has introduced a mandatory electronic invoicing system called Fatoora.

If you run a VAT-registered business in Saudi Arabia, this affects how you create, issue, and submit invoices.

The system is regulated by the Zakat, Tax and Customs Authority (ZATCA) and forms part of the kingdom's broader digital transformation strategy.

Under ZATCA e-invoicing, businesses are required to generate invoices in a specific electronic format, include mandatory data fields, and, in later phases, integrate their systems directly with ZATCA’s platform.

This article explains what Saudi e-invoicing is, how Fatoora works, when it becomes mandatory, and what it means for your business.

In this article, we will discuss:

• What is ZATCA e-invoicing (Fatoora) in Saudi Arabia?
• What does a ZATCA e-invoice format look like?
• When does ZATCA e-invoicing become mandatory in Saudi Arabia?
• How does Saudi e-invoicing apply to Shopify stores selling B2B?
• How e-invoicing works for B2C transactions?
• Support for Saudi Fatoora e-invoices in Sufio
• Frequently asked questions

E-invoicing in Saudi Arabia is called Fatoora. It is a government-mandated system that standardizes how VAT invoices are created and reported for taxable transactions in the kingdom.

The main purpose of Fatoora is to make invoicing more transparent, easier to control, and harder to misuse for tax purposes.

While businesses may still provide paper or PDF copies to customers, these documents are only a visual version of the invoice.

The legally valid record is the structured electronic invoice generated by the system.

The rules for B2B e-invoicing were introduced through regulations formally adopted by the Zakat, Tax and Customs Authority (ZATCA), the government body responsible for implementing and enforcing e-invoicing in Saudi Arabia.

In Saudi Arabia, e-invoices must be issued in a machine-readable electronic format that tax authorities can automatically process.

In practice, invoices are generated either as an XML file or as a PDF/A-3 document that contains the same invoice data embedded in XML format.

The PDF is intended for human reading, while the embedded XML allows the invoice to be validated and processed by ZATCA’s systems.

Each e-invoice must include all mandatory tax information, such as seller and buyer details, VAT numbers, invoice numbers, taxable amounts, VAT breakdowns, and, when required, e-invoicing compliant QR codes.

The invoice must be in Arabic, although additional languages (e.g., English) can be included for human readability.

If you’re doing business in Saudi Arabia, one of the most common questions is, when does e-invoicing become mandatory, and what exactly do I need to comply with?

Saudi Arabia introduced e-invoicing in two phases to give businesses time to prepare.

Understanding which phase applies to you, especially under ZATCA e-invoicing Phase 2, is key to staying VAT-compliant.

As a Shopify store selling to business customers in Saudi Arabia, you need to make sure your invoicing process supports Fatoora-compliant B2B e-invoices.

For Saudi B2B sales, Shopify stores should:

1. Collect the required buyer information

   When the buyer is VAT registered, you must collect the legal business name and VAT number (also referred to as the Tax Identification Number, or TIN, in Saudi Arabia). This information determines whether the transaction qualifies as a B2B sale and requires a tax invoice.

2. Generate invoices in a compliant electronic format

   B2B invoices must be generated electronically using a ZATCA-compliant invoicing solution.

   The invoice data must follow the required technical structure (for example, XML or PDF/A-3 with embedded XML).

3. Submit invoices to ZATCA for clearance

   Each B2B tax invoice must be submitted to Fatoora for approval. Only approved invoices are legally issued and may be provided to the buyer.

PDF copies may still be emailed or made available for download, but they do not replace the cleared electronic invoice data used for tax compliance.

These rules apply only to resident VAT-registered merchants.

Finally, invoice archiving is mandatory. Cleared invoices must be stored securely and remain accessible for audit and tax review purposes.

For B2C transactions (simplified invoices), invoices must be reported to ZATCA within 24 hours of issuance.

These invoices are not subject to prior clearance, but must still comply with the required electronic format and technical specifications.

For Shopify stores based in Saudi Arabia, Sufio is being developed to support e-invoicing in line with ZATCA’s Fatoora requirements, without changing your existing Shopify checkout flow.

E-invoice data is planned to be generated for both invoices and credit notes issued to Saudi business customers (B2B).

This will apply to invoices automatically created from orders in your Shopify store, as well as invoices created manually in the Sufio app.

The same will apply to credit notes, whether they are automatically created from refunds and returns in the online store or created manually in the app.

Sufio will generate Saudi e-invoices in ZATCA-compliant formats and integrate with the Fatoora platform to submit invoices, depending on the applicable phase.

At the same time, the app will continue to generate professional PDF invoices that can be emailed to your customers or downloaded from their accounts in your online store.

What is a ZATCA e-invoice?

A ZATCA e-invoice is an electronic invoice that meets the requirements set by the Zakat, Tax and Customs Authority (ZATCA).

It is created in a machine-readable format and submitted through the Fatoora Platform for validation.

Is e-invoicing mandatory in KSA?

Yes. E-invoicing is mandatory in Saudi Arabia for resident VAT-registered businesses.

The obligation was introduced in two phases. In the Generation Phase, businesses must create invoices in a compliant electronic format.

In the integration phase, businesses are required to connect their systems to ZATCA and submit invoice data electronically.

What is the format of an e-invoice in Saudi Arabia?

In Saudi Arabia, an e-invoice is a digital invoice created in a specific format set by ZATCA.

During Phase 2, tax invoices must be generated either as an XML file or as a PDF/A-3 file that contains embedded XML data.

How to make an e-invoice in Saudi Arabia?

To issue an e-invoice in Saudi Arabia, businesses must use a ZATCA-compliant invoicing system.

The system generates the required electronic invoice data, including all mandatory VAT fields, and submits it to the Fatoora platform when invoices must be reported or approved.

What is the procedure of e-invoicing in Saudi Arabia?

The e-invoicing process starts with generating the invoice electronically using a compliant system. For businesses subject to Phase 2, the invoice data is then submitted to ZATCA via the Fatoora Platform.

Once the invoice is successfully cleared or reported, it can be issued to the buyer.