What ZATCA Phase 2 requires
Saudi Arabia's e-invoicing programme (Fatoora) has two phases. Phase 1, the generation phase, has applied since 4 December 2021. Phase 2, the integration phase, has been rolled out in waves since 1 January 2023 and requires taxpayers' systems to connect to ZATCA's platform.
In Phase 2, standard tax invoices (B2B) must be cleared by ZATCA before they are shared with the buyer, and simplified tax invoices (B2C) must be reported within 24 hours. Every invoice is a UBL 2.1 XML document with a cryptographic stamp, an invoice hash linked to the previous invoice, and a QR code.
How UPAX handles it
Invoices, credit notes and debit notes are created in UPAX receivables, sales, projects or online channels, then pass an issue workflow: review, validate, sign, clear or report, and post. Nothing is posted to the ledger until the invoice has been accepted.
Each e-invoice generation solution (EGS) unit keeps its own invoice counter and previous-invoice hash chain. The signing key is held in a key store: the application asks for signatures and never reads private keys.
Issued e-invoices are never edited. Corrections are made with credit or debit notes, exactly as the rules require.
Guided EGS onboarding
UPAX walks your team through onboarding each EGS unit: key generation, the certificate signing request with your VAT number and location, the compliance CSID using the OTP from the Fatoora portal, the six compliance sample documents, and the production CSID. Renewal keeps the hash chain intact.
This guide summarises the requirements as published at the time of writing. Always confirm current rules and dates with the relevant authority.
