FATOORAH, the electronic invoicing system, is required for taxpayers living in Saudi Arabia. It also applies to customers or third parties issuing tax invoices on behalf of Saudi Arabian taxpayers, as outlined in the VAT Implementing Regulation.

• Electronic invoices, debit notes, and credit notes require digital storage and management in specific data formats. These data formats must be structured, meaning no physical copies, unstructured files, PDF images, or scanned documents are acceptable. Additionally, these electronic documents must be available to external systems through automated programming interfaces (APIs) for seamless integration and access.
• The plan will be executed in two stages: the creation stage starting December 4, 2021, and the incorporation stage commencing in January 2023.
• E-invoices must prioritize the use of Arabic. However, other languages are permitted to be used in addition to Arabic.
• GAZT plans to introduce e-invoices in two phases.
• At the beginning, businesses will need to create and store their tax-related documents (invoices and notes) in a specific electronic format using an electronic system. This means businesses won’t need to interact directly with the tax authorities at this stage.