Published · 25 July 2026 · Updated 28 July 2026 · 1 min read

ZATCA Phase 1 vs Phase 2: What Changes for Your Business

Phase 1 is local generation with a 5-tag QR. Phase 2 adds Fatoora integration, XML, cryptographic stamps, and tighter deadlines for SMEs.

Reviewed by Ghulam Ilyas · Lead Software Engineer (MERN Stack)

Phase 1 focuses on generating and storing electronic invoices correctly, including the TLV QR on simplified invoices.

Phase 2 connects your e-invoice generation solution to ZATCA’s Fatoora platform for clearance (B2B) or reporting (B2C) within defined time windows.

Technically, Phase 2 introduces UBL 2.1 XML, CSID certificates, digital signatures, previous invoice hash chaining, and additional QR tags.

ZATCA has been lowering revenue thresholds wave by wave, bringing more SMEs into Phase 2 through 2026.

If you are not yet notified for Phase 2, a compliant Phase 1 PDF generator remains useful. Plan early for integration so you are not blocked when your deadline arrives.

For the full Phase 2 picture — onboarding, the XML structure, the cryptographic stamping, and the wave deadlines — see our ZATCA Phase 2 (Fatoorah) complete guide and the linked cluster pages.

References

Primary sources used in this guide:

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