The digital transformation of Saudi Arabia’s tax system is accelerating—and at the heart of it is the ZATCA mandate. As part of the government’s broader Vision 2030 agenda, the Zakat, Tax and Customs Authority (ZATCA) is redefining how businesses issue, store, and report invoices. For companies operating in the Kingdom, from gold stores and retailers to manufacturers and service providers, understanding and complying with the ZATCA mandate system is not just a legal requirement—it’s a competitive necessity.
What Is the ZATCA Mandate System?
The ZATCA mandate system is a government-led initiative that enforces the digitalization of invoicing through e-invoicing regulations (commonly referred to as the “Fatoorah” system). Its primary goals are to:
- Combat the shadow economy
- Enhance tax transparency and accountability
- Ensure real-time compliance with VAT and zakat laws
- Enable digital auditing and reduce fraud
The system mandates that all taxable persons issue structured electronic invoices instead of manual or paper-based ones. It applies across sectors—including gold and jewelry shops, eCommerce, logistics, F&B, and professional services.
Phases of the ZATCA E-Invoicing Mandate
The ZATCA e-invoicing program is being rolled out in two main phases:
Phase 1 – Generation Phase (Launched December 4, 2021)
All VAT-registered businesses in Saudi Arabia must generate and issue tax invoices electronically. Invoices must contain required elements such as QR codes, VAT numbers, timestamps, and mandatory fields as per ZATCA standards.
Phase 2 – Integration Phase (Began January 2023 and Ongoing)
Businesses must integrate their invoicing systems directly with ZATCA’s platform through compliant APIs. Invoices must be verified, cryptographically stamped, and reported in real-time.
ZATCA has staggered deadlines based on business size and turnover. In 2025, medium-sized businesses are actively being onboarded, with larger entities already fully integrated.
Key Compliance Requirements
To meet ZATCA’s mandates, businesses must:
- Issue invoices through compliant e-invoicing software
- Include required fields: UUID, cryptographic stamp, hash, QR code
- Store invoices in a tamper-proof format (PDF/A-3 with XML)
- Use a certified ERP or accounting system that integrates with ZATCA’s platform
- Ensure readiness for future audits via digital logs and reports
This applies to all B2B, B2G, and B2C transactions for goods or services sold in the Kingdom.
What Happens If You Don’t Comply?
Failure to comply with the ZATCA mandate system exposes your business to:
- Fines ranging from SAR 5,000 to SAR 50,000
- Potential suspension of commercial operations
- Delays in customs clearances and government payments
- Reputational damage and customer trust loss
With ZATCA intensifying its enforcement through AI-driven audits and automatic validation, businesses cannot afford to lag in compliance.
How Daysum Helps You Stay Compliant
At Daysum, we specialize in delivering ZATCA-compliant digital solutions through our ERP, accounting, and invoicing platforms. Our system is designed to meet both phases of the mandate and serves a wide range of industries—from retail chains and professional services to gold ERP systems tailored for gold and jewelry shops.
Our Capabilities Include:
- ZATCA-approved e-invoicing software with real-time integration
- QR code and cryptographic stamp automation
- Arabic/English invoice templates aligned with regulatory standards
- Seamless integration with ERP, POS, inventory, and finance modules
- Custom workflows for industries like manufacturing and gold stores
Whether you need to retrofit your current invoicing system or implement a full ERP solution, Daysum ensures you meet all ZATCA requirements with zero disruption.
Industry Examples: Compliance in Action
Gold and Jewelry Shops
Using Daysum’s gold ERP, shops can generate compliant invoices with karat-specific valuation, automated barcode scanning, and secure ZATCA-approved formats.
Retail & eCommerce
Retailers using Daysum’s cloud ERP issue real-time digital invoices with embedded tax data and integrate seamlessly with inventory and CRM modules.
Service-Based Businesses
Professional firms and agencies use our solutions to issue VAT-compliant invoices, track client payments, and remain audit-ready.
How to Choose the Right Solution
Not all software providers are created equal. To ensure full ZATCA compliance, look for:
- Phase 2 ZATCA certification
- Localized Arabic support
- Industry-specific modules (especially for regulated sectors like gold)
- Secure, cloud-based infrastructure
- Responsive local support and training
With Daysum, you get all this—and more.
Looking Ahead: The Future of Tax Technology in Saudi Arabia
As ZATCA continues to evolve its digital infrastructure, we can expect:
- Greater use of AI and automation for compliance monitoring
- Instant e-audits and automated reconciliation
- Integration with banking, customs, and trade systems
- Expanded mandates for e-delivery notes, credit/debit notes, and real-time analytics
To stay ahead, businesses must invest in future-proof systems that adapt as compliance evolves. Daysum is committed to keeping your operations ready for whatever comes next.
Conclusion: Be Confident in Your Compliance with Daysum
The ZATCA mandate system is not just a regulatory requirement—it’s a digital milestone for doing business in Saudi Arabia. By adopting the right technology early, your business can stay ahead of the curve, reduce risk, and unlock operational efficiency.
Whether you operate gold stores, retail outlets, or a growing service firm, Daysum is your trusted partner in achieving seamless, scalable, and fully compliant invoicing and ERP operations.
Contact us today to schedule a free consultation and discover how Daysum can help you stay compliant—and grow with confidence.
