E-Fatoora the Electronic Invoices Provider Approved by the Zakat

April, 2025
- E-Fatoora Updates

In a pivotal step towards enhancing digital transformation and achieving compliance with the requirements of the Zakat, Tax and Customs Authority, E-Fatoora has been included into the list of the approved e-invoicing solution providers for Phase Two. This achievement reflects E-Fatoora’s commitment to providing innovative and effective solutions for companies, facilitating a smooth transition to Phase Two e-invoicing and meeting all technical and regulatory requirements with ease.

As part of Saudi Vision 2030, e-invoicing is now mandatory. E-Fatoora ensures compliance.

As part of Saudi Arabia’s Vision 2030, the Kingdom seeks to enhance digital transformation in various sectors, and the most prominent of these efforts includes the launch of the e-invoicing system. E-Fatoora is an approved technical solution that helps companies and institutions issue e-invoices that comply with the requirements of the Zakat and Income Authority, which contributes to protecting the interests of merchants and ensuring financial transparency.

The system aims to integrate transactions between the Zakat and Income Authority and commercial projects through the Fatoora Portal, which eliminates fraud and unauthorized funds. In light of the difficulty of employing specialized technical teams in all companies, E-Fatoora provides the most efficient and secure technical solution in the Kingdom, ensuring that companies organize their financial operations and link them to the Authority easily and securely.

In this article, we will discuss how E-Fatoora meets all the requirements of e-invoicing Phase Two and why it is one of the best-approved e-invoicing solution providers in the Kingdom.

What is E-Invoicing?

E-invoicing is an advanced digital system that seeks to convert paper invoices into electronic ones, with controls making them acceptable and valid for the Authority. This makes their issuance and exchange easier and simpler, while also preserving them for a longer time without damage or loss, enhancing their role as a document that can be relied upon to preserve rights.

The invoice must be prepared electronically from the beginning, as handwritten and scanned invoices are not considered e-invoices. These invoices are used to prove financial and tax transactions to track supply chains between entities, which helps eliminate transactions of the hidden economy, monopoly, and other illegal activities that cause economic problems.

Types of E-Invoices

The e-invoice is a tax invoice subject to the Value Added Tax Law. Accordingly, e-invoices are divided into two types:

Tax Invoice: Issued from one entity to another, including all elements of the required tax invoice as stipulated by the Zakat and Income Authority.
Simplified Tax Invoice: Usually issued from an entity to an individual, including all elements stipulated by the Authority.

Creating Phase Two-Compliant Invoices with Approved E-Invoicing Solution Providers

Here are the steps to prepare and create e-invoices for your company through E-Fatoora, the best e-invoicing solutions provider, offering an optimal experience for your business:

Register and subscribe to the E-Fatoora accounting system, which offers a trial period without requiring credit card details.
Choose the package that suits your company, as E-Fatoora provides multiple packages tailored to your business size.
Prepare invoice templates that meet the Zakat and Income Authority’s Phase Two e-invoicing standards.
Fill in the data to create your invoices and select the appropriate payment method.
Generate accurate reports on issued invoices, track them, and monitor payment dates from customers.

Phases of E-Invoicing

To ensure seamless integration between E-Fatoora (the best e-invoicing solutions provider) and the Zakat, Tax, and Customs Authority, the process follows two phases defined by the Authority:

Phase One – Issuance and Preservation Phase

This initial phase began in December 2021 for entities subject to e-invoicing regulations. It required converting paper invoices into electronic format, including all basic elements. However, it was not yet mandatory, allowing merchants to adapt gradually without specialized software.

E-Fatoora is now an approved e-invoicing solution.

Phase Two – Connection and Integration Phase

Rolled out in January 2023, this phase introduced stricter, mandatory requirements for all VAT-registered businesses. A six-month grace period was provided for compliance. Given the technical complexity, E-Fatoora simplifies integration with the Zakat and Income Authority, offering an easy-to-use, approved solution trusted by thousands of businesses.

Features of the E-Invoicing System

The e-invoicing system offers numerous benefits, including:

Enhanced transparency in commercial transactions, ensuring tax compliance and boosting the Saudi economy.
Simplified transactions between parties with a unified, secure system.
Improved communication and efficiency in financial operations.
Environmental benefits by reducing paper usage.
Fraud prevention, combating monopoly and price manipulation.
Secure sales/purchase operations, facilitating legal proof in disputes.

Terms and Conditions for Applying the E-Invoicing System

The system is mandatory for all VAT-registered entities in Saudi Arabia. Conditions include:

Being subject to VAT (as an entity or individual).
Operating in the Kingdom with VAT-applicable revenues.
Authorization to issue tax invoices.

Registration Requirements

Entities must register if they meet the following:

Annual revenues exceeding SAR 375,000 (mandatory).
Optional for revenues below SAR 375,000 but above SAR 187,500.
Third-party invoice issuers must register.
Valid commercial registration and submission of required data.

Best Approved E-Invoicing Solution Providers

E-Fatoora stands out as the leading e-invoicing solution in Saudi Arabia, offering:

Full compliance with ZATCA’s Fatoora Portal and regulations.
Seamless integration with the Authority and other systems.
Secure e-signatures to prevent fraud.
User-friendly interface with training resources.
Customizable invoice templates for various business needs.
Automated data analysis and performance tracking.
Real-time invoice and inventory management.
Arabic and English language support.
Advanced encryption and data backup.
Controlled access levels for multi-user environments.
ZATCA-approved and regularly updated.
Exceptional technical support and widespread adoption in KSA.

How Does E-Fatoora Integrate with the E-Invoice System?

E-Fatoora ensures seamless integration with the Zakat and Income Authority via APIs, enabling:

Automatic data exchange between systems.
Fast, error-free invoice generation and submission.
Compliance with tax regulations, avoiding legal risks.

Once an invoice is created in E-Fatoora, it is instantly saved in the Authority’s system—no manual uploads or technical expertise required.

Conclusion

We’ve outlined the top approved e-invoicing solution providers, with E-Fatoora leading the way. Its integration with the Zakat and Income Authority ensures transparent, efficient financial operations, reducing human error and enhancing business growth.

Whether you’re tech-savvy or not, E-Fatoora’s free trial lets you experience its full features firsthand. Join today and streamline your e-invoicing process effortlessly!