Short answer: VAT-registered restaurants and cafés in Saudi Arabia have had to issue electronic invoices with a QR code since 4 December 2021. Under Phase 2, they must also connect their POS to ZATCA’s FATOORA platform and report every simplified tax invoice within 24 hours of issuing it. In July 2026 ZATCA announced Wave 25, covering businesses with VAT-able revenue above SAR 187,500, with integration starting 1 February 2027.
What Changed in 2026 and Why Restaurants Should Care
Phase 2 (integration) has rolled out in waves since 1 January 2023, starting with the largest taxpayers and moving steadily down. On 24 July 2026 ZATCA announced that Wave 25 covers businesses whose VAT-able revenue exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025, and that they must integrate with FATOORA from 1 February 2027. ZATCA notifies targeted businesses in advance.
That threshold brings many small cafés, VAT-registered food trucks and single-outlet restaurants into scope. Restaurants feel it more than most sectors because they issue a very high number of small invoices every day, and each one has to flow through the system correctly.
Phase 1 vs. Phase 2 at the Point of Sale
| Item | Phase 1 (Generation) | Phase 2 (Integration) |
|---|---|---|
| Start date | 4 December 2021 for all taxpayers | In waves from 1 January 2023; latest announced is Wave 25 on 1 February 2027 |
| POS requirement | Generate and store invoices in a compliant solution | Generate in the prescribed format and connect to FATOORA |
| Handwritten or spreadsheet invoices | Prohibited | Prohibited |
| QR code | Mandatory on simplified invoices | Mandatory, with additional cryptographic elements |
| Sending invoices to ZATCA | Not required | Simplified invoices reported within 24 hours |
| Cryptographic stamp | Not required | Required; exporting its private key is prohibited |
The Simplified Tax Invoice in a Restaurant
Most restaurant sales are to individual consumers, so they receive a simplified tax invoice. When the customer is a VAT-registered business that needs an invoice in its name, such as corporate catering, you issue a standard tax invoice with its own requirements. Your system must handle both.
What the QR code contains
In Phase 1 the QR code carries the seller name, VAT number, invoice date and time, invoice total including VAT, and VAT amount. According to ZATCA’s technical community, the integration phase adds:
- The hash of the XML invoice.
- The ECDSA signature.
- The ECDSA public key.
- For simplified invoices and their notes, the signature of the cryptographic stamp’s public key by ZATCA’s technical certificate authority.
Cashiers never enter any of this. The system builds the XML, signs it and generates the QR code. Your job is to make sure your provider implements it to ZATCA’s specifications.
Reporting within 24 hours
Under ZATCA’s simplified invoice guide, the seller issues and hands over the invoice immediately, then reports it to ZATCA within 24 hours through a solution integrated with FATOORA. For restaurants this matters: guests never wait for ZATCA approval, and invoices can be transmitted automatically in batches during the day.
Prohibited Functions in E-Invoicing Solutions
ZATCA’s guide lists functions that no compliant solution may offer. Owners should know them because some touch common till habits:
- Tampering with invoices, notes or records after issue.
- Running more than one invoice sequence.
- Lacking user management, such as everyone sharing one login.
- Allowing the solution’s date and time to be changed.
- Exporting the cryptographic stamp’s private key.
In practice, you cannot “delete” an invoice after a sale. Corrections are made through credit or debit notes, which the system must also issue and store.
Steps to Get Your Restaurant Ready
- Check whether you are targeted: review VAT-able revenue for 2022 to 2025 and watch for ZATCA’s notification.
- Audit your current POS: does it truly support Phase 2, including simplified invoices, standard invoices and notes?
- Clean up business data: legal name, VAT number, national address and CR must be correct and consistent.
- Create a user per cashier with clear permissions.
- Onboard devices in the FATOORA portal by generating a one-time password and entering it in the solution.
- Test before the deadline: issue invoices and returns in a test environment and confirm they are accepted.
- Train staff on returns, corporate invoices and what to do when the connection drops.
Common Invoicing Mistakes in Restaurants and Cafés
- Sharing one cashier login, which conflicts with the user-management requirement and makes refunds untraceable.
- Voiding an order after invoicing without a credit note, so what was reported to ZATCA no longer matches your books.
- Printing a table “pro forma” and never issuing the final invoice from the system at the point of sale.
- Changing the device clock manually, an explicitly prohibited function.
- Issuing a simplified invoice for a corporate order when the company needs a standard invoice to reclaim input VAT.
Multiple Branches and Devices
In Phase 2, every solution or device that issues invoices is onboarded through the FATOORA portal with a one-time password. A restaurant with three branches and four tills needs a clear plan: which device belongs to which branch, who onboards it, and how it is replaced without stopping sales. A system that manages devices, branches and users centrally saves effort and keeps sales and VAT reporting per branch in one place.
What This Means for Saudi Restaurant and Café Owners
- The deadline is close: 1 February 2027 leaves months, not years, to choose and test a system.
- A standalone till is not enough: invoicing tied to accounting keeps your VAT return consistent with what was reported to ZATCA.
- Branches need structure: every POS device must be onboarded and managed, so choose a system that handles devices and branches centrally.
- Internet outages happen: the 24-hour window for simplified invoices leaves room for a system that works offline and syncs later.
How Riv-ERP Helps
Riv-ERP is compliant with ZATCA e-invoicing Phase 1 and Phase 2 and 15% VAT, and its POS works with inventory and accounting in one system, so every invoice flows into journal entries and tax reports automatically. RivDesktop runs online or offline on Windows, web and cloud under a perpetual license. Our local team in Jeddah provides 24/7 support to help you configure everything before your integration date. Request a quote and get Phase 2 ready.
Run a restaurant? See Riv-ERP for restaurants and cafés, integrated with HungerStation, Jahez, Keeta and Mrsool.
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Frequently Asked Questions
Is my restaurant included in Wave 25?
If your VAT-able revenue exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025, you meet the Wave 25 criterion. ZATCA will notify you in advance, with integration starting 1 February 2027.
Must each simplified invoice be sent to ZATCA before the guest receives it?
No. The simplified invoice is given to the guest immediately and reported within 24 hours through the FATOORA-integrated solution.
What do I issue when a company orders catering?
If the customer is a VAT-registered business that needs an invoice in its name, issue a standard tax invoice with buyer details instead of a simplified one. Your system must support both types.
Can a cashier cancel an invoice issued by mistake?
Invoices cannot be deleted or altered. Corrections are made with a credit or debit note linked to the original invoice, and those notes follow the same requirements.
What extra elements does the Phase 2 QR code include?
The XML invoice hash, the ECDSA signature, the public key and, for simplified invoices, ZATCA’s certificate-authority signature on the stamp’s public key, all generated automatically by the system.
Sources: ZATCA – Wave 25 announcement, ZATCA – Simplified tax invoice guide, ZATCA technical community – Phase 2 QR fields.
