POS and ZATCA e-invoicing in Saudi Arabia: phase 1 and phase 2 explained

In Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) requires businesses to issue electronic invoices. If you run a shop, café or restaurant, your POS system is usually where these invoices are created — so it needs to be ready for ZATCA e-invoicing.

This is general information, not tax advice. Always check ZATCA's official announcements for the rules that apply to you.

Phase 1: generating e-invoices

Phase 1 started on 4 December 2021. Businesses must generate invoices and notes electronically using compliant software, instead of handwritten or editable documents, and keep proper records.

Phase 2: integrating with ZATCA

Phase 2 started on 1 January 2023. Businesses must connect their invoicing systems to ZATCA's platform and share e-invoices with it. ZATCA rolls this out in waves, based on revenue. For example, ZATCA announced a 25th wave covering resident taxpayers whose taxable revenue was above SAR 187,500 in 2022, 2023, 2024 or 2025, with a compliance date of 1 February 2027. ZATCA notifies businesses in each wave, usually several months ahead.

What your POS needs for ZATCA

• Compliant invoice format with the required fields and a QR code
• Simplified (B2C) and standard (B2B) invoices as needed
• Credit and debit notes for returns and corrections
• Connection to ZATCA for phase 2, including device onboarding
• Arabic and English on receipts
• Secure records that cannot be edited after issue

Ready-made or custom POS?

Many POS products in Saudi Arabia support ZATCA. A custom POS is useful when you also need your own processes — several branches, a restaurant kitchen flow, wholesale price lists or links to your ERP. BrightExa Tech works online with businesses in Riyadh, Jeddah, Dammam and across Saudi Arabia. See our POS system and our Saudi Arabia page.

Frequently asked questions

### Does ZATCA e-invoicing apply to small shops? Phase 1 applies broadly to VAT-registered businesses. Phase 2 is applied in waves by revenue. Check ZATCA's notices for your business.

### Is VAT shown on the receipt? Yes. Saudi Arabia's standard VAT rate is 15%, and compliant invoices show VAT details.

### Can my current POS be upgraded? Sometimes. It depends on the software and whether it can meet phase 2 requirements.

Need a ZATCA-ready POS? Get a free quote.