ZATCA Phase 1 vs Phase 2 Comparison

ZATCA E-Invoicing: Phase 1 vs Phase 2

Feature Phase 1 (Generation) Phase 2 (Integration)
Status Outdated
Launched Dec 2021
Active & Mandatory
Rolling out now
Government Submission ❌ Not required ✅ Required within 24 hours
API Integration ❌ No integration needed ✅ Real-time API to ZATCA portal
QR Code Basic QR (seller info only) Enhanced QR with government cryptographic signature
Validation Self-validated by business Government validates & approves each invoice
Invoice Clearance Not needed Must get clearance before sharing with customer
Penalties Lower fines Up to 50,000 SAR per violation
Who Must Comply All VAT-registered businesses Rolling out by revenue (currently >40M SAR, expanding to all)
Technical Complexity Simple - just format invoices correctly Complex - requires API development & integration