ZATCA Phase 2: how to know if your business is included and prepare

ZATCA Phase 2 is the Integration Phase of Saudi e-invoicing. It is introduced in waves, and ZATCA says targeted taxpayers are notified at least six months before their integration date. Do not decide that your business is included from a social-media post or another company’s deadline. Review the notification sent to your registered contact channels and confirm your status through official ZATCA services.

What changes in ZATCA Phase 2?

Phase 1 focused on generating and storing compliant electronic invoices and notes. Phase 2 adds integration requirements with the FATOORA platform and further technical and business controls. The treatment and timing can depend on the taxpayer group and invoice type, so a business should connect its legal, tax and operational requirements before changing its live invoicing process.

How do you know whether your business is included?

1. Check official email and SMS messages sent to the contacts registered with ZATCA.
2. Sign in through the official taxpayer services and review notices addressed to the legal entity.
3. Confirm the integration date, taxpayer identity and VAT registration details.
4. Ask ZATCA or your tax adviser when the scope is unclear.

ZATCA’s official rollout page explains that Phase 2 is implemented in waves and that targeted taxpayers receive advance notice. Published wave announcements can provide context, but the notice addressed to your establishment is the practical trigger to verify.

What should you prepare before integration?

• List every place that creates an invoice, including branches, sales staff and connected systems.
• Confirm whether each workflow produces tax invoices, simplified tax invoices, credit notes or debit notes.
• Review the registered legal name, VAT number, addresses and buyer data used by the team.
• Define who can issue, correct and review invoices.
• Plan a test period and a controlled move to the connected solution.

Questions to ask an e-invoicing provider

Ask how the solution handles FATOORA onboarding, invoice identifiers, XML records, security controls, rejected documents, credit and debit notes, archiving and user permissions. Request a demonstration using a transaction that represents your work. A directory listing alone does not transfer compliance responsibility from the taxpayer; ZATCA states that taxpayers may use any solution that meets the requirements.

A safe testing workflow

Create representative customers, products or services and both invoice types that your business uses. Test a normal sale, a discount, a cancellation or correction, and a failed submission scenario. Compare the human-readable invoice with the underlying business data. Record who approves the move to production and how the team will respond if an invoice is rejected.

How Kafy fits into the preparation

Kafy brings customer records, products and services, sales and invoicing into one workflow. Review Kafy’s Saudi e-invoicing page and the small-business readiness checklist, then contact the Kafy team to confirm the setup that applies to your company. Use representative records during the 30-day trial before issuing live documents.

Frequently asked questions

Does every business enter Phase 2 on the same date?

No. ZATCA implements the Integration Phase in waves and notifies targeted taxpayers. Verify the notice and current official guidance for your entity.

Is Phase 1 compliance enough for Phase 2?

Phase 2 introduces integration and additional controls. A Phase 1 workflow should be reviewed against the Phase 2 requirements that apply to the taxpayer.

Can software guarantee compliance?

Software can support the required process, but the taxpayer remains responsible for its data, configuration and obligations. Confirm business-specific questions with ZATCA or a qualified adviser.