08 Jul, 2026
What is ZATCA Phase 1? The Generation Phase Explained
Since 4 December 2021, every VAT-registered business in Saudi Arabia must issue invoices electronically. This is ZATCA Phase 1 — the Generation phase: handwritten and plain-typed invoices are no longer accepted.
What Phase 1 requires
- Invoices must be generated and stored electronically in a compliant system — not written by hand or produced in a text editor.
- Simplified tax invoices (B2C, shops and restaurants) must carry a QR code that encodes the seller name, VAT number, timestamp, total and VAT amount.
- Standard tax invoices (B2B) must show the buyer's VAT number and full details.
- The system must prevent tampering: no deleting issued invoices, no editing them after issue — corrections happen through credit and debit notes.
Zenvy POS is Phase 1 compliant out of the box: every sale prints a simplified tax invoice with the ZATCA QR code, returns are issued as credit notes, and nothing can be silently deleted.
Phase 1 applies to all resident VAT-registered taxpayers regardless of size — if you sell in the Kingdom, this already applies to you.
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