POS SAAS is Phase 2 ZATCA Compliant

ZATCA E-Invoicing — Complete Guide & Compliance Requirements

This page explains how POS SAAS supports e-invoicing requirements set by the Zakat, Tax and Customs Authority (ZATCA), and clarifies responsibilities between the software and the merchant with full transparency.

Last updated: 2026-04-29

1 What is E-Invoicing?

E-invoicing converts paper invoice issuance and storage into a fully electronic process, enabling structured exchange and processing of invoices between seller and buyer. It is mandatory on every VAT-registered taxpayer in the Kingdom of Saudi Arabia.

The process is supervised by the Zakat, Tax and Customs Authority (ZATCA) through the Fatoora Platform, and all businesses are required to issue e-invoices that meet specific technical requirements.

2 ZATCA Two Implementation Phases

Mandatory

📝

Phase 1 — Generation

Started December 4, 2021. Invoices must be issued and stored electronically in a structured format, with a QR code on simplified invoices.

QR Code UUID Hash Secure storage

Mandatory

🔗

Phase 2 — Integration

Started January 1, 2023 (phased groups). Requires direct integration with Fatoora to clear tax invoices for approval, or report simplified invoices within 24 hours.

XML / UBL 2.1 CSID Digital signature API

3 POS SAAS Compliance with ZATCA

POS SAAS is fully compliant with Phase 2 e-invoicing, providing the merchant with every tool needed to issue legally valid invoices and integrate directly with the Fatoora platform.

Automatic generation of UUID, QR code, and hash for every invoice
Digital signing using a CSID certificate issued by ZATCA
Direct submission of invoices to the Fatoora platform in XML format (UBL 2.1)
Status tracking for every invoice (accepted / rejected / warning)
Automatic renewal of the CSID certificate two weeks before expiry, with backup email alerts to the merchant
Secure cloud archiving of invoices, encrypted and tamper-proof

4 Supported Technical Features

POS SAAS supports every technical requirement in ZATCA's XML Implementation Standard and the implementation rules:

QR Code (TLV/Base64)

Printed on every simplified invoice

UUID v4

Unique identifier per invoice

Hash (SHA-256)

Hash chain linking each invoice to the previous

XML / UBL 2.1

ZATCA's official format

🔐

CSID

Digital signing certificate

✍

Digital Signature

ECDSA / SHA-256

PIH/ICV Sequencing

Chronological invoice sequence

API

Fatoora API Integration

Compliance + Reporting + Clearance

5 Supported Invoice Types

Tax Invoice (B2B) — For business-to-business transactions — requires ZATCA Clearance before being sent to the customer.
Simplified Tax Invoice (B2C) — For end-consumer transactions — reported to ZATCA within 24 hours of issue.
Credit Note — For returns and downward price adjustments.
Debit Note — For upward price adjustments.

6 Steps to Integrate POS SAAS with ZATCA

Integration is simple and takes less than 5 minutes if your data is ready:

Visit fatoora.zatca.gov.sa with your ZATCA credentials, and make sure the "E-Invoicing Solutions" tab is activated.

Generate an OTP

From the Fatoora platform, request an OTP to register the e-invoicing solution (POS SAAS). The OTP is valid for a short time only.

Enter the OTP into POS SAAS

Log in to your POS SAAS dashboard → Settings → E-Invoicing → enter the OTP. The platform will automatically: generate a CSR → request a CSID from ZATCA → store the certificate securely on our servers.

Issue a test invoice

After successful integration, issue a test invoice to verify that it is sent to ZATCA successfully and that Clearance or Reporting confirmation is returned.

Start live operation

You can now issue all invoices through POS SAAS and they will be sent to ZATCA automatically. You can track each invoice's status from the dashboard.

7 Responsibilities Between POS SAAS and the Merchant

ZATCA compliance is a shared responsibility, but the legal obligation rests with the merchant as the registered taxpayer:

What POS SAAS Provides

•Cloud platform compliant with ZATCA technical requirements
•Automatic generation of every mandatory field
•Secure integration with the Fatoora platform via API
•Automatic CSID certificate renewal two weeks before expiry
•Backup email alerts at 30 / 14 / 7 / 1 days if auto-renewal fails
•Continuous updates when ZATCA requirements change (no merchant action needed)
•Technical support to assist with the integration process
•Secure cloud archiving of invoices, encrypted and tamper-proof

Merchant Responsibilities

•Register with ZATCA and obtain a valid VAT number
•Enter accurate business data into POS SAAS
•Maintain a stable internet connection (the platform is cloud-based)
•Review invoices before issuing to verify data correctness
•Export periodic copies of invoices from the platform
•File tax returns on time
•Contact ZATCA for any legal question or doubt

Important Disclaimer — Please Read Carefully

POS SAAS is software to assist the merchant in complying with e-invoicing requirements, but it is not a substitute for the merchant's legal responsibility toward the Zakat, Tax and Customs Authority.

Fines and tax/legal obligations are entirely the merchant's responsibility. POS SAAS and the developer (High Speed IT Establishment) bear no financial liability for: internet outages on the merchant's side, invoice transmission delays caused by issues on the merchant's device, or incorrect data entry by the user.

The merchant must regularly review the official ZATCA website for any regulatory or requirement updates.

9 Frequently Asked Questions

Is POS SAAS officially Phase 2 compliant?

Yes — POS SAAS is designed per ZATCA Phase 2 technical specifications, supports Fatoora integration, CSID issuance, and digital invoice signing. We recommend reviewing the certified solutions list on ZATCA's website to confirm.

Do I need a permanent internet connection to issue invoices?

Yes. POS SAAS is a fully cloud-based platform that requires an internet connection to access and issue invoices. Tax invoices (B2B) are sent to ZATCA immediately for Clearance before delivery to the customer, and simplified invoices (B2C) are reported to ZATCA within 24 hours of issue.

What if sending an invoice to ZATCA fails?

If ZATCA acceptance is delayed or the connection fails, the invoice stays saved in the system with a "pending submission" status, and POS SAAS automatically retries via background jobs until the invoice is accepted. We recommend a backup connection (e.g. a mobile SIM); the legal responsibility remains with the merchant.

Do I need an accountant or technician to connect POS SAAS to ZATCA?

No. The integration is designed to be very simple. All you need is the OTP from Fatoora (takes 2 minutes), enter it into POS SAAS, and the system handles the rest automatically. Technical support is available if needed.

What if ZATCA rejects a specific invoice?

POS SAAS shows ZATCA's rejection message directly with the reason (e.g. wrong VAT, missing field). You can correct the invoice and resend. A tax invoice cannot be delivered to the customer before ZATCA accepts it.

How long is the CSID valid, and how is it renewed?

A CSID certificate is valid for one full year from the issue date. POS SAAS <strong>automatically renews the certificate two weeks before expiry</strong> with no merchant action required. As a safety net, the system sends email alerts at 30, 14, 7, and 1 day before expiry if the auto-renewal could not complete for any reason, so the merchant can renew manually via a fresh OTP from the Fatoora platform.

Does POS SAAS store my invoices in the cloud?

Yes. POS SAAS is a fully cloud-based platform. All your invoices are stored on secure servers, encrypted and immutable, and compliant with ZATCA archiving requirements. You can access and export your invoices from any device through a web browser.

10 Official Links

For official requirements and updates directly from ZATCA:

🏛️

Official ZATCA Website

📋

📚

Official guides and specifications

🎧

POS SAAS Support

Need help with integration?

For any question about e-invoicing and how POS SAAS helps, contact us via support or [email protected]