ZATCA Phase 1 vs Phase 2: What Changes for Your Business

Phase 1 focuses on generating and storing electronic invoices correctly, including the TLV QR on simplified invoices.

Phase 2 connects your e-invoice generation solution to ZATCA’s Fatoora platform for clearance (B2B) or reporting (B2C) within defined time windows.

Technically, Phase 2 introduces UBL 2.1 XML, CSID certificates, digital signatures, previous invoice hash chaining, and additional QR tags.

ZATCA has been lowering revenue thresholds wave by wave, bringing more SMEs into Phase 2 through 2026.

If you are not yet notified for Phase 2, a compliant Phase 1 PDF generator remains useful. Plan early for integration so you are not blocked when your deadline arrives.