What is the FATOORA Portal in Saudi Arabia?

The FATOORA Portal in Saudi Arabia is a key component of the Kingdom’s digital transformation in taxation, specifically concerning electronic invoicing (e-invoicing). It is developed and operated by the Zakat, Tax and Customs Authority (ZATCA), the governmental body responsible for regulating taxes, zakat (a form of almsgiving), and customs affairs in Saudi Arabia.

The term “FATOORA” itself means “invoice” in Arabic, and the portal is part of a broader initiative to digitize and modernize the invoicing process to improve transparency, enhance tax compliance, and reduce the shadow economy.

This response will provide a comprehensive overview of the FATOORA Portal, covering the following key aspects:

1. Background: Why Was the FATOORA Portal Created?

Saudi Arabia’s Vision 2030, a national strategy aimed at diversifying the economy and reducing dependence on oil revenues, includes a strong focus on digital transformation and economic formalization. One aspect of this is increasing tax efficiency and reducing fraud.

In this context, ZATCA introduced e-invoicing (FATOORA) as a mandatory requirement for VAT-registered businesses to ensure:

Increased efficiency in tax collection.
Enhanced transparency in commercial transactions.
Improved data quality and accuracy for audits and compliance checks.
Reduction in the shadow economy and under-the-table transactions.

The FATOORA Portal serves as the digital infrastructure to facilitate and regulate this transformation.

2. What Is the FATOORA Portal?

The FATOORA Portal is an online platform provided by ZATCA to manage the electronic invoicing ecosystem. It allows businesses to:

Register and manage their e-invoicing solutions.
Integrate their accounting or POS systems with ZATCA’s e-invoicing platform.
Submit and clear invoices for certain types of transactions.
Monitor compliance and receive technical guidance and certification.

The portal supports both technical onboarding and compliance monitoring related to the two main phases of Saudi Arabia’s e-invoicing framework.

3. Two Phases of E-Invoicing in Saudi Arabia

The FATOORA program is implemented in two main phases:

🔹 Phase 1: Generation Phase (Issued from 4 December 2021)

Businesses are required to generate and store electronic invoices using compliant systems.
E-invoices must be issued in structured electronic format (XML) and must include required fields as specified by ZATCA.
There is no requirement to integrate with ZATCA for real-time invoice submission in this phase.
Applies to:
- Tax invoices (B2B transactions).
- Simplified tax invoices (B2C transactions).

During this phase, the FATOORA Portal mainly helped companies to:

Understand requirements.
Prepare for implementation.
Access technical documentation, APIs, and specifications.

🔹 Phase 2: Integration Phase (Started January 1, 2023 – Rollout in Waves)

VAT-registered taxpayers must integrate their e-invoicing systems with ZATCA’s FATOORA platform.
All invoices must be cleared (for tax invoices) or reported (for simplified invoices) to ZATCA in near real-time.
Requires use of compliant e-invoicing solutions that are whitelisted and registered with ZATCA.

Key Technical Features of Integration Phase:

Cryptographic stamp: Invoices must include a unique cryptographic stamp for authenticity.
UUID (Universally Unique Identifier): Each invoice must have a globally unique identifier.
Hashing and digital signatures: Ensures integrity and non-repudiation.
QR code: Mandatory on simplified tax invoices for consumers.

The FATOORA Portal is the central place for onboarding to this integration phase.

4. Features and Functionalities of the FATOORA Portal

The FATOORA Portal (https://zatca.gov.sa/en/E-Invoicing) includes:

✅ Developer and Technical Tools

API specifications and sandbox environment.
SDKs and sample implementations.
Integration guides and error handling documentation.
Public key infrastructure (PKI) guidance for digital signatures.

✅ Solution Provider Registration

E-invoicing solution providers can register and get certified by ZATCA.
ZATCA publishes a list of approved and compliant e-invoicing solution providers.

✅ Compliance Monitoring and Reporting

Businesses can track their compliance status.
View logs of invoice clearances or reporting submissions.
Receive error reports or compliance flags from ZATCA.

✅ Device and System Registration

Businesses register their invoicing systems or POS devices with ZATCA.
Each registered device is issued a unique UUID and cryptographic seal.

✅ User Support and Training

Access to video tutorials, FAQs, user manuals.
Webinars and downloadable learning materials.
Technical support request submissions.

5. Types of E-Invoices in FATOORA System

Under the FATOORA system, there are two primary types of invoices:

📘 Standard Tax Invoice (B2B)

Used for transactions between VAT-registered entities.
Must include VAT number of the buyer.
Must be cleared with ZATCA before issuance.
Requires digital signatures and full invoice fields.

📙 Simplified Tax Invoice (B2C)

Used for sales to end consumers.
Must include QR code and basic information.
Reported to ZATCA within 24 hours of issuance.
No real-time clearance needed.

6. Who Needs to Use the FATOORA Portal?

The requirement to issue electronic invoices through FATOORA applies to:

All VAT-registered businesses in Saudi Arabia.
All types of goods and services providers, unless specifically exempt.
Businesses using Point of Sale (POS), ERP systems, or manual accounting systems, which must now be digitized and integrated with FATOORA.

Exemptions include:

Non-resident VAT payers.
Businesses not registered for VAT.

7. Benefits of the FATOORA Portal and E-Invoicing System

The digitization of invoices through FATOORA offers benefits for the government, businesses, and the overall economy.

For the Government (ZATCA):

Increased VAT compliance and reduced tax evasion.
Real-time audit capabilities.
Better economic visibility and forecasting.

For Businesses:

Streamlined invoicing processes.
Improved record-keeping and audit readiness.
Easier VAT refund claims.
Competitive edge for being tech-compliant.
Integration opportunities with accounting, ERP, or POS systems.

For the Economy:

Encourages fair market competition.
Reduces the size of the informal economy.
Supports broader digital transformation goals of Vision 2030.

8. Security and Privacy Measures

Because e-invoicing involves sensitive financial and transactional data, the FATOORA system includes:

Public Key Infrastructure (PKI) for encryption and digital signatures.
Use of cryptographic stamps to validate invoice authenticity.
Controlled access through APIs, OAuth 2.0 protocols, and whitelisted IPs.
ZATCA compliance audits and strict penalties for violations.

9. Common Integration Methods

Businesses can integrate with the FATOORA Portal in multiple ways depending on their size and infrastructure:

For Small Businesses:

Use of pre-approved POS or accounting software with built-in FATOORA support.
Some providers offer cloud-based or SaaS invoicing tools directly integrated with ZATCA.

For Medium to Large Enterprises:

Custom API integrations via ERP systems such as SAP, Oracle, Microsoft Dynamics, Odoo.
Some businesses deploy middleware gateways to handle API calls and cryptographic compliance.

10. Penalties for Non-Compliance

ZATCA has established penalties for failure to comply with FATOORA regulations:

Failure to issue e-invoices: SAR 5,000 – SAR 50,000.
Tampering with e-invoices: SAR 10,000 – SAR 100,000.
Failure to report invoices: Additional penalties based on frequency and severity.
Incorrect invoice format: Fines or notices to rectify.

11. Future Outlook

Saudi Arabia’s success in rolling out the FATOORA system is being closely watched by other Gulf Cooperation Council (GCC) nations. The system will evolve to:

Include cross-border invoices for imports/exports.
Extend into digital tax refunds and automated audits.
Support advanced data analytics for market intelligence.
Encourage regional harmonization with other GCC e-invoicing frameworks (e.g., UAE’s e-invoicing roadmap).

12. How to Access the FATOORA Portal

You can access the FATOORA Portal through:

🔗 Official Website:
https://zatca.gov.sa/en/E-Invoicing

🔗 Taxpayer Portal (for compliance and login):
https://eservices.zatca.gov.sa/

The portal is available in Arabic and English, and requires Mudad (national digital ID platform) or GOSI credentials for business users.

Conclusion

The FATOORA Portal is a cornerstone of Saudi Arabia’s move toward a more digitized, transparent, and efficient tax system. Through its implementation, the country is achieving multiple goals under Vision 2030, such as improving tax compliance, boosting revenue collection, and formalizing the business environment.

For businesses operating in Saudi Arabia—whether large corporations or small enterprises—adoption of FATOORA is not only a legal requirement but also an opportunity to modernize internal processes and enhance operational efficiency. Integration with the portal should be seen not just as a compliance task but as a step toward future-ready business infrastructure.

If you’d like, we can also provide a detailed technical implementation guide or a comparison of top FATOORA-compliant POS/e-invoicing solutions in Saudi Arabia.