ZATCA launched the e-invoicing project in two phases, each with different requirements and timing. This article explains the difference between the two phases and how your business can prepare for both through Riv-ERP.
Phase 1: Generation and Storage Phase
This phase began in December 2021 and required businesses to issue tax invoices electronically and store them digitally instead of paper or manual invoices, without needing a direct integration with the Authority.
Phase 2: Integration Phase
This phase, which is applied to groups of taxpayers progressively according to the Authority’s notification, requires linking the business’s invoicing system directly with the Fatoora platform, so that every invoice is approved electronically the moment it is issued.
Key Differences Between the Two Phases
- Phase 1 focuses on digital generation and storage, while Phase 2 focuses on direct integration with the Authority.
- Phase 2 invoices need a specific XML format and an approved QR code.
- Phase 2 requires a digital authentication certificate issued by the Authority.
- Phase 2 is applied gradually based on each business’s revenue size.
How Does Riv-ERP Help You Prepare for Both Phases?
Riv-ERP supports issuing Phase 1-compliant e-invoices from day one, with the ability to activate direct integration with the Fatoora platform as soon as your business falls within Phase 2 scope, without needing to change systems or migrate data.
Practical Steps to Prepare
- Check the official notification from the Authority to know your Phase 2 start date.
- Make sure your current accounting system supports the required XML format.
- Prepare your digital authentication certificate in advance to avoid delays.
- Test the integration process well ahead of the regulatory deadline.
Conclusion
Knowing the difference between the two e-invoicing phases helps you plan well and avoid violations, and with Riv-ERP you move between the phases with complete smoothness.
