- Development Team
- Feb 01, 2026
Linking with the Zakat, Tax and Customs Authority: Phase Two
This phase is part of the continuous drive towards digitalization in the Kingdom of Saudi Arabia, where it has become essential for commercial establishments to comply with linking to the Zakat, Tax and Customs Authority in the second phase of implementing electronic invoicing. This phase, which began in January 2023, requires companies to adapt their accounting systems to meet the Authority’s requirements. In this context, the role of the officially approved electronic invoicing accounting system by the Zakat, Tax and Customs Authority, provided by sds, stands out as an integrated solution for managing digital invoices and automatically linking them to the relevant platform.
Requirements for Linking with the Zakat, Tax and Customs Authority in Phase Two
To ensure a smooth link of your accounting system with the Zakat, Tax and Customs Authority in the “Linking and Integration” phase, the following basic requirements must be met to ensure system compatibility and smooth linking:
•Use a compatible accounting software: The accounting software must be able to operate online and be compatible with digital invoicing systems. The cloud-based electronic invoicing system provided by sds is an ideal solution to meet this requirement.
•Linking to the Authority’s platform: Ensure that the accounting system is actually linked to the “Fatoora” platform of the Zakat, Tax and Customs Authority.
•Invoice sharing: Share all issued electronic invoices directly with the Authority’s platform to ensure full compliance with the requirements.
•Invoice format: Electronic invoices must be issued in XML format or PDF/A-3 format including an XML file. Each invoice must include all required data within the second phase of the electronic invoicing system, which are:
•Invoice title indicating the document type.
•Accurate date and time of issue.
•A unique number for each invoice.
•Quick Response (QR Code) for quick verification of invoice validity.
•Detailed data for both the supplier and the buyer.
•Total amounts with values before and after Value Added Tax (VAT).
•The commercial registration number of the supplier or an officially approved identifier.
How to Link with the Zakat, Tax and Customs Authority in Phase Two
After the Zakat, Tax and Customs Authority announced the start of implementing the second phase of digital invoicing, establishments included are now required to link their accounting systems to the “Fatoora” platform of the Authority. This is done through the following steps:
1.Accessing the “Fatoora” platform: The platform can be accessed by logging in using the unique number or email and password, or through the official website of the Zakat, Tax and Customs Authority, then navigating to the “Electronic Invoicing” section and clicking on “Fatoora Platform.”
2.Selecting a new device or configuring a unit: From the displayed page, click on selecting a new device or configuring a unit.
3.Issuing a temporary password: Choose the option “Issue Temporary Password.” The platform will generate a password valid for one hour only, which can be copied or downloaded as a file for later use.
4.Entering the password in the accounting software: Enter the temporary password into the accounting software you have chosen to issue your electronic invoices. It should be noted that this password will be available for one hour only.
5.Issuing electronic invoices: After linking your accounting software to the “Fatoora” platform, you can now easily issue electronic invoices, ensuring their full compliance with the requirements of the Zakat, Tax and Customs Authority.
How does sds’s Cloud Invoicing System facilitate linking with the Zakat, Tax and Customs Authority?
Adopting the cloud invoicing system provided by sds represents a strategic step for a smooth transition from the first phase to the second phase of electronic invoicing implementation. This system aligns with the Authority’s regulations and contributes to achieving the following benefits:
•Ease of issuing and sending invoices: The cloud invoicing system from sds allows for the creation of various types of invoices and their direct and smooth submission to the Zakat, Tax and Customs Authority without complexity.
•Activating financial transaction alerts: Alerts for invoices related to debtors and creditors can be activated, where these notifications are automatically sent to the Zakat, Tax and Customs Authority, enhancing the accuracy and clarity of operations.
•Simplicity in handling: The cloud invoicing system from sds is considered easy to use, as its interface is designed to facilitate users of various experiences in preparing and managing electronic invoices without any complexity.
•Reliable technical support service: The cloud invoicing system from sds provides a specialized support team capable of dealing quickly and professionally with any malfunction that may hinder sending invoices to the Zakat, Tax and Customs Authority. The system also includes an automatic re-sending feature upon failure to ensure continuous linking.
•Compliance with official standards: Since the cloud invoicing system from sds is approved by the Zakat, Tax and Customs Authority, it is designed to fully comply with the legal and technical requirements of the second phase of electronic invoicing, ensuring that invoices issued through it include all mandatory elements such as digital signature and QR code.
•Automatic connection to the Authority’s platform: The cloud invoicing system from sds provides the ability to instantly link with the “Fatoora” platform, where electronic invoices are automatically sent upon issuance, without the need for any manual action, which enhances the accuracy of operations and ensures compatibility with approved systems.
•Achieving accuracy in financial reports and invoices: The cloud invoicing system from sds provides an advanced level of accuracy in preparing invoices and reports, which helps track the status of each invoice and ensure its submission to the Authority’s platform on time, without delay or errors.
Subscribing to the cloud invoicing system provided by sds is a necessary step for every establishment seeking to comply with electronic invoicing requirements in the Kingdom. The system provides a secure and fast environment for issuing and storing invoices, with the possibility of direct linking with the Zakat, Tax and Customs Authority. It is characterized by ease of use, operational accuracy, and the provision of real-time reports, making it one of the most efficient and reliable solutions for managing invoices and smoothly following up on tax obligations.
Frequently Asked Questions
What is the second phase of electronic invoicing?
It is the process of linking all sales operations within a single electronic platform, thereby transforming the process of issuing notifications and invoices from paper form to an electronic system between the buyer and seller.
What is the penalty for not linking electronic invoices with the Zakat, Tax and Customs Authority?
The penalty for not linking electronic invoices with the Zakat, Tax and Customs Authority is a monetary fine that may sometimes reach 10,000 Saudi Riyals for each violation.
Who are subject to electronic invoicing?
Those subject to electronic invoicing are all taxpayers and those subject to Value Added Tax, with the exception of non-resident taxpayers within the Kingdom, and any entity that issues a tax invoice on behalf of a taxpayer subject to Value Added Tax.
Are individual establishments obligated to electronic invoicing?
Individual establishments whose dealings are limited to the end consumer are not obligated to join the electronic invoicing system. However, if there are dealings with entities subject to the system, these establishments must register in the system and issue electronic invoices when conducting any commercial operation with those entities, in compliance with the approved regulations as of October 20, 2024.
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