How to choose ZATCA-compliant accounting software in Saudi Arabia: a checklist

ZATCA-compliant accounting software issues invoices that meet ZATCA's e-invoicing rules for your phase: compliant electronic generation since December 2021 and, once your wave applies, integration with the Fatoora platform. Choose by testing that, not by a logo: Phase 2 in the plan you pay for, a test invoice in ZATCA's simulation portal, Arabic invoices and an archive you can export.

This guide sets out what the rules require, how to tell which wave you are in, a decision table by type of business, a checklist you can use in any demo, and a short test that exposes weak claims. Every rule below was read on zatca.gov.sa on 14 October 2026. It is general information, not tax advice; for your own case, check with ZATCA or a licensed tax advisor.

What ZATCA-compliant accounting software means in 2026

ZATCA rolled out e-invoicing (Fatoora) in two phases: Phase 1, generation, from 4 December 2021, and Phase 2, integration, from 1 January 2023 [1]. Phase 1 applies to all taxpayers except non-residents, and Phase 2 is rolled out in waves by taxpayer group, with ZATCA notifying each group at least six months in advance [2].

In Phase 1, invoices must come from a compliant electronic solution. Handwritten invoices and invoices made with text-editing tools are not e-invoices. A tax invoice shows the buyer's VAT number if the buyer is registered, and a simplified tax invoice must carry a QR code generated by the solution. The solution must not allow uncontrolled access, tampering with invoices or logs, or more than one invoice sequence [6].

Phase 2 adds integration with ZATCA's systems [7]:

Which wave are you in?

ZATCA selects each wave by revenue subject to VAT and notifies the taxpayers it targets. The two most recent waves, as published on zatca.gov.sa:

The test looks back: a single year above the threshold is enough, even if revenue has fallen since. If you received a notification, your accounting software must be integrated by the date in it. If you did not, ZATCA's rule of at least six months' notice means you will have time, but choosing software with Phase 2 now avoids a second migration later.

Is there ZATCA-approved accounting software?

Not in the sense most advertisements suggest. ZATCA publishes a list of solution providers that passed its qualification process, for Phase 1 and for Phase 2. ZATCA calls it an indicative list that is not legally binding on taxpayers and is not an approval of any provider's solution, and says it bears no liability for publishing it [5]. Taxpayers may use any provider whose solution meets the requirements, even if it is not on the list [1].

So the search for the "best accounting software" has no single answer. The right one is the program whose plan includes what your wave requires, handles the invoice types you issue, and passes the checks below with your own data. A provider on ZATCA's list is a reasonable place to start; a test invoice is the evidence.

Decision table: what your accounting software must handle

What the software must do depends on whom you sell to. Find your row before you compare products.

If your business fits two rows, the software must handle both, and the demo should show both.

The checklist: 13 points to verify before you subscribe

Use it as-is in every demo. Ask for each answer in writing.

Compliance in the plan you pay for

1. Phase 2 is in your plan. Some providers include Phase 2 only from their second tier up. On 14 October 2026, for example, Daftra's pricing page listed Phase 1 only on its Basic plan and Phase 1 and 2 on Advanced and Premium [11].
2. Both flows work: clearance for standard tax invoices and reporting within 24 hours for simplified ones, including credit and debit notes [7].
3. The right formats: invoices generated and stored in XML or PDF/A-3 with embedded XML, and shared with business buyers in those formats [7][8].
4. None of the prohibited functions. ZATCA's list includes anonymous access, default passwords, no session logging, editing or deleting issued invoices, editing logs, inaccurate timestamps, resetting the invoice counter, more than one invoice sequence per unit, changing the system time, and exporting the private stamping key [7].

Onboarding and testing

5. Who onboards each unit on the Fatoora portal. The taxpayer logs in with ERAD credentials, chooses "onboard new solution unit/device", generates a one-time password valid for one hour and enters it in the unit; cryptographic stamp identifiers are renewed and units revoked from the same portal [9].
6. A test in the simulation portal, ZATCA's separate environment for end-to-end testing, before any live invoice [9].
7. The three readiness steps in ZATCA's Phase 2 guide are covered: confirm the solution is integration-compliant with your provider, onboard it on Fatoora, then verify with your provider that it generates compliant invoices [8].

Arabic and records

8. Arabic on every invoice field, with any other language as a translation; Arabic or Hindi numerals are both accepted [10][7].
9. An archive you control: export of invoices to an external archive, with files named by VAT number, timestamp and invoice reference [7], kept for at least six years from the end of the tax period [10].
10. Where the servers are. ZATCA's VAT guideline (May 2026) says a resident taxpayer's records server must be in the Kingdom [10], and its e-invoicing guideline requires cloud-hosted data to be reachable through a direct link that can be given to ZATCA [7]. Ask the provider for both in writing.

Day-to-day operation

11. Internet and incidents: the solution needs an internet connection to share invoices, and taxpayers must notify ZATCA of incidents that stop invoice generation and resume clearance or reporting once it works again [7]. Ask what the software does while offline and how it catches up.
12. Corrections by credit note only: an issued invoice is cancelled through a credit note and a new invoice [7]. The software should make that the only path.
13. Updates and exit: a written commitment to apply ZATCA specification changes, and a way to export all data and invoices in XML if you leave.

Our guide to choosing a software company in Saudi Arabia suggests how to score written answers from several providers.

A 30-minute test that exposes weak claims

Ask the provider to share a screen with a test company connected to ZATCA's simulation portal, and run these six steps with your own customer and item names.

1. Issue a standard tax invoice to a VAT-registered customer. Ask to see the cleared XML returned with ZATCA's stamp and QR code.
2. Issue a simplified invoice as at a till, and print it. Check the Arabic fields and the QR code.
3. Scan the QR code with ZATCA's app, which ZATCA's guideline describes as a way for buyers to check invoices [7].
4. Try to delete or edit the invoice you just issued. The software should refuse and offer a credit note.
5. Issue a credit note for part of the standard invoice and check that it references the original.
6. Export the archive for the test period and open one XML file.

If any step fails, or the provider cannot run it in a simulation environment, you have your answer before you sign.

Common mistakes when choosing accounting software

These come straight from the official rules, and each one is expensive to fix later.

• Buying the entry plan without Phase 2 because the wave notification has not arrived. Wave 25's revenue test looks back to 2022, so one strong year is enough to bring a business into scope [3].
• Treating a logo as proof. ZATCA's list is indicative and is not an approval [5].
• Keeping a side invoice book in Word or Excel for some customers. ZATCA's VAT guideline tells taxpayers to stop issuing handwritten invoices or invoices made with word-processing software [10].
• Deleting a wrong invoice instead of issuing a credit note [7].
• Cancelling a subscription before exporting the archive, which must be kept for at least six years [10].
• Hosting records abroad without checking how ZATCA's in-Kingdom rule applies to you [10]. Our guide to data residency in Saudi Arabia covers the separate rules for personal data.

Your next step

This week, check whether ZATCA has notified you of a wave, and list the invoice types you issue and the tills and branches that issue them. Then send the 13-point checklist to three providers, and book the 30-minute test with the two that answer best. The ZATCA-compliant accounting software that passes every step with your own data is the one to choose, whatever its rank in an advertisement. You can read about O AI, a software and AI company in Al Khobar, on our home page.