What is e-invoicing (Fatoora)?
E-invoicing means issuing invoices, credit notes and debit notes in a structured electronic format instead of paper or plain PDF files, through an electronic system that meets the authority's requirements. The aim is to standardise invoice data, reduce manipulation and make tax returns easier to reconcile.
The rules apply to resident VAT taxpayers and other parties covered by the regulation, while non-resident taxable persons are excluded from the e-invoicing requirement. Confirm your exact scope and wave through ZATCA or your tax advisor.
The difference between phase one and phase two
Phase one (the generation phase) started in December 2021. It requires invoices to be issued from an electronic system that stores them and does not allow tampering, with a QR code printed on simplified invoices containing the seller's name, VAT number, date and amounts.
Phase two (the integration phase) started in January 2023 and is being applied to groups of businesses in waves according to annual revenue, with the authority notifying each business of its compliance date. In this phase your system must connect directly to the authority's platform, sign each invoice electronically, and submit it as XML according to a defined specification.
Simplified invoices and standard tax invoices
A simplified invoice is the one you issue to an individual customer (B2C), which is the most common case in restaurants. In phase two you issue it and hand it to the customer immediately with a QR code, then report it to the authority within 24 hours.
A standard tax invoice is the one you issue to another business (B2B), such as corporate orders and catering. It needs the buyer's VAT number and must be cleared by the authority before it is shared with the customer. For a return or cancellation you issue a credit note linked to the original invoice rather than deleting it.
What does your restaurant need?
Before enabling the integration, get these items ready:
- A valid VAT number, commercial registration and national address matching what is registered with the authority.
- An ordering or point-of-sale system that meets the phase two requirements.
- An activation code (OTP) from the Fatoora portal to onboard the issuing unit for each branch.
- Correct pricing data including VAT on every item and on delivery fees.
- A responsible staff member who periodically reviews submission status and handles any rejected invoice.
How does Q-Orders handle it?
In Q-Orders every branch has its own issuing unit that can be onboarded in the test environment first and then in production. Once enabled, issuance can be manual or triggered when the order is created, paid or completed. Eligible invoices are signed and submitted in the background, and the invoice QR is available on the printed receipt.
When the configured automatic credit-note rules apply to an eligible issued invoice, a refund or cancellation can create a linked credit note. Failed submissions are retried and every document keeps a visible status, but staff should still review rejections and unresolved failures before the applicable deadline.
Practical tips
Start the integration in the test environment weeks before your compliance date and review the first ten invoices yourself. Make sure the business name and VAT number on the receipt exactly match the authority's records. Train cashiers that a cancellation after an invoice has been issued means a credit note, not a deletion.
The takeaway
E-invoicing compliance is not an extra burden when your system takes care of it. Choose a solution that issues invoices from the orders themselves rather than a separate system that needs manual entry. Read about the e-invoicing service on the services page, or contact our team for help with the integration.
